Secret Asset Transfers and Bankruptcy
Some debtors considering bankruptcy are under the unsubstantiated fear that bankruptcy doesn’t protect enough of their assets, so what do they do? They engage in secret asset transfers to hide assets before filing bankruptcy–a huge mistake. If a debtor transfers an asset to someone and then retains secret control or a beneficial interest in the asset once he/she files for bankruptcy their bankruptcy discharge could be denied.
Transferring Money Secretly During Bankruptcy
Usually, what occurs is that a debtor transfers a house or some cash to a friend or relative for “safe” keeping while they file bankruptcy. This is illegal and may even be considered fraudulent. If the bankruptcy court discovers the secret transfers they can take the money, house or other asset from the person who it was transferred to. If you are considering bankruptcy and have already transferred assets to a friend or relative for “safe” keeping please contact a Dallas- Fort Worth bankruptcy attorney . Illegal asset transfers must be undone to avoid jeopardizing your bankruptcy case.
Remember, bankruptcy offers a slew of asset exemptions which will allow most debtors to keep their most important possessions such as a house, car, jeweler etc. Please contact a Dallas- Fort Worth bankruptcy attorney to find out more about how you can protect your assets in bankruptcy.