CALL FOR A FREE
INITIAL CONSULTATION
813.254.5696

What are Illegal Asset Transfers?

If you are considering bankruptcy or you have any concerns at all about your financial situation, it’s important to be aware of the legal and illegal things you are permitted to do. Far too many people look for an easy way out, and in some cases, their actions break the law. Even if they do not intend to do anything wrong and they are otherwise law-abiding citizens, their financial desperation puts them in a spot where they are willing to do just about anything – even illegal things – to solve their problems.

One of the most common legal issues for people considering bankruptcy is illegal asset transfers. This occurs when a person about to file for bankruptcy moves assets into another person’s name to protect them from the bankruptcy.

Now, it’s natural to want to protect what is yours. If you have rightfully earned money or made investments, and you’d prefer not to be forced to use that money to pay off your mounting debt, it’s understandable why you might want to move ownership of that money or those assets to a loved one or friend.

The problem is asset transfer can be illegal.

What Types of Asset Transfers are Illegal?

There are three types of illegal asset transfers. If you are struggling financially and you believe bankruptcy could be in your financial future, even if you don’t plan to file for several months or more, you need to avoid the following:

Transferring Property into Someone Else’s Name

Transferring property, including your home, into a friend or family member’s name might seem smart if you are about to file for bankruptcy, but it is actually illegal. It’s possible for your bankruptcy trustee to reclaim any property transferred within a year of your filing and use the property to repay debts, or your bankruptcy request can be denied outright.

The truth is, it might be possible to protect your property in your bankruptcy filing without doing anything illegal, which is why it is so important to work with an experienced attorney who knows how to look out for your best interests.

Selling Off Assets for Less than Market Value

It might also be tempting to sell assets for less than their market value – after all, something is better than nothing if you are going to lose everything in bankruptcy, right? Unfortunately, this can also be viewed as an illegal transfer, especially if you are selling non-exempt property.

Where things get dicey is if you try to sell assets to pay bills, not intending to file for bankruptcy, only to realize bankruptcy is necessary a few weeks or months down the road. If you decide to file for bankruptcy and you have recently sold any assets, be sure to disclose this information to your bankruptcy attorney. He or she can help you determine the best way to handle your actions now that you are filing.

Repaying Family Loans

Loans from family are prioritized differently than loans from professional lenders. This means if you pay back money you borrowed from a family member within 90 days of filing for bankruptcy, the trustee can disallow this payment. Your trustee will take action to prevent other creditors from being left at a disadvantage, which means anything you paid a loved one could be demanded from the trustee to be put toward other debts.

The ins and outs of bankruptcy can be confusing and the last thing you want if you are filing is to have your request denied because of an honest mistake. An experienced attorney can help you manage your circumstances and move forward in the best way possible. For more information or to schedule a consultation, contact the experienced Tampa bankruptcy attorneys at The Law Offices of Robert M. Geller at 813-254-5696.

Tampa Bankruptcy Law Blog

3 Reasons Why Bankruptcy Cases Get Dismissed and What This Means for You

Bankruptcy Case Dismissed There are two possible outcomes for those filing for bankruptcy. It doesn’t matter if you qualify for...
Read More

Who Files for Bankruptcy?

Should I File for Bankruptcy? If you’re considering bankruptcy and you feel as if you’re the only person in the...
Read More

3 Reasons Your Student Loan Debt is Ruining Your Financial Future and How Bankruptcy Might Help

Student Loan Debt Taking out a loan or multiple loans to attend college is nothing new. Students have been using...
Read More

What Happens If You Miss Your 341 Meeting?

341 Meetings are One of the Most Important Obligations in Bankruptcy There are several requirements you must meet when you...
Read More

3 Things to Help You with Post Bankruptcy Credit Repair

Bankruptcy Credit Repair One of the biggest challenges you’ll have post-bankruptcy is getting credit extended to you. But for most...
Read More

What is the Real Reason People are Filing for Bankruptcy?

Can filing for bankruptcy help you with unpaid medical bills? One of the most common misconceptions about bankruptcy is that...
Read More

What You Need to Know about Bankruptcy Court

Bankruptcy Court Bankruptcy is a process that many people find intimidating. In part, this is because they must turn their...
Read More

What to Expect from Bankruptcy Counseling

Bankruptcy Counseling Filing for bankruptcy is not an easy decision. For many, it’s their only option for getting the debt...
Read More

Why Hiring a Bankruptcy Attorney is Worth the $ [Infographic]

Everyone who files for bankruptcy must complete a bankruptcy petition. It can be up to 40 pages and filled with...
Read More

What Really Happens When You Declare Bankruptcy?

How to Declare Bankruptcy Bankruptcy is a last resort for many who file. After attempting to clean up a messy...
Read More

Contact Us

Search Website

Archive

Request a FREE Consultation

For The Next 5 Days Get A Free Book About Bankruptcy

Bankruptcy Book

We are A Debt Relief Agency.
We help people file for
bankruptcy under the Bankruptcy Code

Pay OnlineBankruptcy Courses

National Association Of Consumer Advocates Logocomodoavvo1avvo2avvo3LEA
BBB LogoRG Seal

Tampa Office

$Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405


Tampa Bankruptcy Lawyers Map

St. Petersburg Office

$Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G

St. Petersburg, FL 33701
T: (727) 532-3939


Map and Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320





Maps & Directions

At the Tampa Bay law firm, the Law Offices of Robert M. Geller, P.A., we help people with consumer bankruptcy matters in the Tampa Bay-St. Petersburg,  Florida communities such as Clearwater,     St. Petersburg, Tampa, Thonotosassa, Riverview, Lutz, Plant City, Brandon, Carrollwood, Wesley Chapel, St. Petersburg Beach, Lakeland, Mulberry, Dade City, Pinellas Park, Largo, Seminole, Odessa, Oldsmar and Lithia, and counties such as Hillsborough County, Pinellas County, Pasco County, Polk County and Manatee County.