If you are thinking about filing for bankruptcy you should meet with a Tampa bankruptcy lawyer to discuss your case before taking any legal action. Without competent legal advice you may be unaware of bankruptcy laws that prohibit you from making transfers of property or incurring certain debts prior to filing for bankruptcy. It is highly recommended to get counsel from an experienced Tampa bankruptcy lawyer if you have questions on how to transfer assets before bankruptcy is filed. Failure to obtain competent legal advice on how to transfer assets before bankruptcy can create significant problems for a Chapter 13 or Chapter 7 case.
How to Transfer Assets Before Bankruptcy to Avoid Fraudulent Transfers
Under current bankruptcy law, the Trustee has the right to bring an action to prohibit the discharge of debts or avoid transfers that occurred prior to the bankruptcy filing. The law is very broad and includes many different types of transfers and debt obligations. Further, a transfer can be deemed fraudulent even if you have no intent to defraud the creditors. This reason, along with many others is why it is so important to receive consult a bankruptcy attorney in Tampa for information on how to transfer assets before bankruptcy is filed.
If you are contemplating filing bankruptcy and need to know how to transfer assets before bankruptcy is filed you should review bankruptcy law 11 U.S.C. §548. Under this bankruptcy law, the trustee has the power to avoid transfers or debts that are:
- Made within 2 years before the date of filing for bankruptcy, if the debtor voluntarily or involuntarily:
- Incurred the debt or transferred property with the intent to hinder, delay, or defraud a creditor; or
- The debtor received less than a reasonable equivalent of value in exchange for the transfer or a debt obligation incurred; and
- was insolvent on the date that the transfer was made, or became insolvent as a result of the transfer; or
- intended to incur, or believed that the debt incurred would be beyond the debtors ability to pay; or
- incurred a debt or made a transfer to or for the benefit of an insider, under an employment contract that was not in the ordinary course of business.
Examples of How to Transfer Assets Before Bankruptcy
Each case is different, you should consult with a bankruptcy attorney in Tampa if you need advice on a specific case or set of circumstances. Examples of fraudulent transfers can include, debtors intentionally selling an asset for less than its fair market value or transferring an asset to another person, with the intent to shield the asset from creditors.
A debtor does not need to intentionally attempt to defraud a creditor for a bankruptcy court to deem a transfer or debt obligation fraudulent. For instance, simply transferring property beyond the reach of creditors or incurring a debt without receiving a reasonable equivalent of value in exchange can be deemed a fraudulent transfer, even if the debtor had absolutely no intention of defrauding a creditor. In Jackson v. Jackson, the bankruptcy court ruled that even though there was no intentional fraud, the fact that the debtor received no value for the transfer, and it left the debtor with little capital to continue his business the transfer was fraudulent under bankruptcy law.
Bankruptcy Law Firm in Tampa
If you are having a difficult time meeting your financial obligations Florida Law Advisers, P.A. may be able to help. Our Tampa bankruptcy attorneys have years of experience helping people just like you prepare for bankruptcy and obtain a fresh start. We combine our experience and skills in the courtroom with a thorough knowledge of the law to help our clients who need advice on how to transfer assets before bankruptcy. When you hire Florida Law Advisers, P.A. you don’t just get legal advice, you get experienced attorneys by your side every step of the way.