If you are considering bankruptcy you should meet with a Tampa bankruptcy lawyer before taking any legal action. Otherwise, you may be unaware of laws that prohibit you from making transfers of property prior to filing 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 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. A common instance of fraudulent transfers occurs when intentionally selling an asset for less than its fair market value. Additionally, transferring an asset, with the intent to shield the asset from creditors can be a fraudulent transfer.
A debtor does not need to intentionally attempt to defraud a creditor for a transfer to be fraudulent. For instance, simply transferring property beyond the reach of creditors may suffice. Alternatively, incurring a debt without receiving a reasonable equivalent of value in exchange can be deemed a fraudulent transfer. Both of these instances can be fraudulent transfers, even if the debtor had 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 clients file 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.