The issues are extremely complicated, but the solutions are easier if you’ve got someone on your side who understands not only the bankruptcy laws but also has the experience needed to help minimize problems. We’ll figure out the value of the transferred asset, pay out the value in a Chapter 13 Plan and you won’t need to worry about it anymore. When you file a Chapter 13 you get a lot more control over your assets and the way they’re disposed of. If you can’t wait until the look-back period runs out, we may need to look at a Chapter 13 bankruptcy. Once the clock ticks down, there’s nothing that can be done to unwind the transfer. What I typically do is go through all of the potentially problematic transfers and determine how close we are to the end of the look-back period. How To Avoid A Fraudulent Transfer Problem This is called, “unwinding the sale,” and it allows the trustee to get the property back and then sell it for the benefit of your creditors. Second, if the trustee finds something odd, he or she may decide to sue the purchaser of the property to take back the asset. This may include reviewing sales contracts, questioning you about the facts and circumstances surrounding the sale, and determining fair market value of the property at the time of sale. What Actions Your Bankruptcy Trustee Takeįirst, the bankruptcy trustee will look at all transfers made within the appropriate look-back period. In New York, for example, the look back period is six full years. This is in spite of the federal 2-year look-back period. Under the UFTA, creditors can look at all transfers made within four years of filing for bankruptcy in California to find a fraudulent conveyance. Bankruptcy Code, the bankruptcy trustee can look at all transfers of money, property or assets made within the two years immediately prior to your bankruptcy filing.Ĭalifornia, however, has adopted the Uniform Fraudulent Transfer Act (UFTA). The Look Back Period For a Fraudulent Transfer With so many people filing for bankruptcy in the wake of the foreclosure crisis, it shouldn’t be shocking to find out that allegations of fraud pop up fairly regularly. Bankruptcy Code if you transfer property for less than fair market value in the run-up to your bankruptcy filing. It’s also considered fraudulent under the U.S. the BLMIS liquidation was December 11, 2008, so the look-back period for preference claims would. When you transfer property out of your name to delay or defraud a creditor within a short period of time prior to filing for bankruptcy, that’s called a fraudulent transfer. preference actions and fraudulent conveyance actions. You owned a piece of property, but you sold it before filing for bankruptcy.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |