CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

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.

Archive

Tampa Bankruptcy Law Blog

How Does Claiming Bankruptcy in Florida Affect Your Children?

Claiming Bankruptcy in Florida Understanding how claiming bankruptcy in Florida affects your children is an important part of determining whether...
Read More

Claiming Bankruptcy in Florida: What Happens When You File for Bankruptcy and Your Spouse Does Not?

Claiming Bankruptcy in Florida You already know how much the things you do affect your spouse when you are married....
Read More

Should You Pay Back What You Owe Loved Ones Before You File for Bankruptcy?

Florida Bankruptcy Laws It’s common for people who are struggling financially to turn to their friends and family for help....
Read More

Bankruptcy and Family Law: Does Filing Affect the Child Support I Pay or Receive?

Bankruptcy and Family Law If you’re like many people, the well-being of your children is your most important priority. Struggling...
Read More

5 Tips for Overcoming the Emotional Toll of Bankruptcy

Florida Bankruptcy Attorney Getting through the bankruptcy process is about more than just improving your finances. Working with a Florida...
Read More

Bankruptcy and Divorce: The Far-from-Perfect Storm

Bankruptcy and Family Law Bankruptcy and divorce separately are two of the most stressful events you can experience in your...
Read More

Does the Pandemic Have You in a Holding Pattern? Here’s How to Know When to File for COVID Bankruptcy

COVID Bankruptcy If you’re struggling to make ends meet and you feel as if your life is on hold because...
Read More

Will Your Favorite Retailer File for Business Bankruptcy in 2021?

Business Bankruptcy 2020 was a tumultuous year and many of the financial challenges caused by the pandemic are expected to...
Read More

Boosted and Extended Benefits Keeping Unemployed Afloat – But For How Long?

Unemployment Benefits Were you one of the millions of people who ended up out of a job and using unemployment...
Read More

Should Bankruptcy Laws Be Adjusted Because of COVID-19?

Bankruptcy Laws The COVID-19 pandemic brought a lot of changes throughout 2020 and many are expected to continue into 2021...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

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

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

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

Map And Directions

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

Map And Directions