Pre-petition transfer
Posted: Thu Mar 29, 2012 8:06 am
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If there's a problem, it's for the trustee, not the debtor here. If he
transfers the property before filing bankruptcy and is completely upfront
about it, the trustee has no reason to interfere with his discharge. Since
the debtor doesnt want the property, he won't care what the trustee does
about chasing any potential fraudulent conveyance which doesn't exist
because there is no value.
Problems in fraudulent conveyances mainly arise when the debtor-transferor
resists unwinding the transaction.
John D. Faucher
Faucher & Associates
5743 Corsa Ave., Suite 116
Westlake Village, CA 91362
(818) 889-8080
Fax: (805) 367-4154
http://www.hurlbettfaucher.com/
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On 3/28/12 10:04 PM, "Sujin Kim" wrote:
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> My client and his ex-spouse own a condo that they rent out. My client is
> contemplating a quit claim of his share of the condo to his ex-spouse. The
> property is significantly underwater, he doesn't want it, is concerned about
> the accompanying liabilities, and needs to cut this lingering connection with
> his ex for his sanity. Is there a problem with the transfer of this property
> before the filing?
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> Thanks,
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> Sujin Kim
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If there's a problem, it's for the trustee, not the debtor here. If he transfers the property before filing bankruptcy and is completely upfront about it, the trustee has no reason to interfere with his discharge. Since the debtor doesn’t want the property, he won't care what the trustee does about chasing any potential fraudulent conveyance – which doesn't exist because there is no value. Problems in fraudulent conveyances mainly arise when the debtor-transferor resists unwinding the transaction. John D. FaucherFaucher & Associates5743 Corsa Ave., Suite 116Westlake Village, CA 91362
The post was migrated from Yahoo.