Giving a gift, or selling for less than true value, can cause problems when done before bankruptcy, but usually only if the amount is large.
If you owe “priority” debts like income taxes and/or support payments, you may be able to pay no more while protecting a transferee.
Overall, Chapter 13 can be more powerful and more flexible than Chapter 7. That often also applies to a fraudulent transfer.
Charitable donations made during the two years before filing bankruptcy may fall within a safe haven of not being fraudulent transfers.
Selling or giving away something innocently, without trying to hurt your creditors, could still give the trustee the right to get it back.
Selling or giving away something to prevent your creditors from getting it may make a certain amount of sense but could be very dangerous.
“Fraudulent transfers” have similarities to “preferences.” They are both worth understanding because they can cause unnecessary hassles.
In our example of the adversary proceeding about whether a debt gets discharged, here is the bankruptcy court’s ruling on the matter.
In our example about the adversary proceeding about whether a debt gets discharged, here are the creditor’s and debtor’s closing arguments.
In our example about the process about whether a debt gets discharged, here’s what happens at the bankruptcy court trial itself.
Here’s how the debtor and creditor get at the facts in an adversary proceeding about whether a debt gets discharged.
Here’s an example showing how to answer a creditor’s complaint objecting to the legal write-off of a debt in bankruptcy.
Here’s an example showing in a practical way what happens when a creditor objects to the legal write-off of a debt in bankruptcy.
The trial, almost always in front of a bankruptcy judge and no jury, is the final determinator whether the challenged debt gets discharged.
If you decide not to settle but rather fight a creditor trying to make you pay a debt that you want to discharge, here’s what happens.