Potentially fraudulent conveyance of exempt asset
Posted: Tue Dec 22, 2009 10:54 am
How about treating it as the purchase price for an annuity with daughter
agreeing to give them $1,000/month for some period of time or the rest of
their lives. The net present value of this stream of income may be exempt.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
dbcommons
Sent: Tuesday, December 22, 2009 9:55 AM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Potentially fraudulent conveyance of exempt asset
Clients who are advancing in years received a substantial ($28k) PI award
earlier this year and gave it to their only daughter. Now they want to file
bk. Creditor/trustee could not touch it if they still had it in the bank,
but I can't find a way out of Sec 548(a)(1)(B). The CA law, CC Sec 3439 et
seq., specifically excepts from the definition of "asset" property "to the
extent it is generally exempt under nonbankruptcy law" but no such exception
in the Bk Code that I can find. I'm afraid even if she gives it back it may
somehow have lost it's exempt status (don't yet know whether she still has
the $ and/or if it's been in the same account since receipt), and there's
equity in the house so no wildcard is available. Appreciate any
thoughts/suggestions from this august body.
David Commons
Message
How about treating it as
the purchase price for an annuity with daughter agreeing to give them
$1,000/month for some period of time or the rest of their lives. The net
present value of this stream of income may be exempt.
David A.
Tilem
Certified Bankruptcy
Specialist*
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