July 27th, 2009 by Reed Allmand 
According to an article in the Star Tribune a federal bankruptcy trustee handling Denny Hecker’s personal bankruptcy sued Hecker’s female friend, demanding that she return documents and $119,800 worth of cash and gifts received from Hecker since January.
The article said:
“The lawsuit lists a $60,000 fur coat and $58,900 in check payments that Hecker gave to Christi Rowan. Bankruptcy Trustee Randy Seaver said the gifts are the property of the estate, which is being liquidated as part of Hecker’s June 4 bankruptcy petition. Seaver referred to the gifts as a “fraudulent transfer.”
This is the type of trouble debtors must avoid when filing bankruptcy. It is not permissible to give away money or any other assets to friends or relatives (or anyone else) before filing bankruptcy in an attempt to avoid paying creditors or to hide assets. Fraudulently transferring assets before filing bankruptcy could cause a dismissal of your bankruptcy case or worse. Furthermore, failing to practice financial prudence before filing bankruptcy could result in an accusation of fraud. What that means is that you are prohibited from going out and charging up credit cards, engaging in reckless spending sprees or “gift giveaways” to friends and family which could result in the diminished value of the bankruptcy estate.
Before filing bankruptcy speak with a Dallas-Fort Worth bankruptcy attorney to find out how to properly prepare for bankruptcy.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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