This task is intended to reassure the court that you have not attempted to conceal assets to prevent them from being seized and liquidated to repay creditors. In an effort to retain an asset, some individuals will give it to a family member or close acquaintance with the intention of receiving it back after filing for bankruptcy and having their debts discharged.
You may own a vacation home that you do not wish to forfeit during the bankruptcy process. Therefore, you convey the property to your uncle Joe. Your objective is to prevent this asset from being sold to repay your creditors. There is an implicit or explicit agreement between you and your uncle that he will deed the property back to you once the bankruptcy proceedings have concluded.
In actuality, you have committed bankruptcy fraud, despite the fact that this all sounds fine in theory. If detected, the court will likely determine that this transfer of assets was fraudulent. In this situation, it is probable that the asset will be seized, liquidated for the benefit of the creditors, and the bankruptcy will be dismissed. In other terms, you have suffered an overall loss.
You may believe you can conceal your transfer by simply answering no to the question ""Have you transferred any property in the last two years?"" However, if you do so, you have committed perjury, which not only exposes you to the possibility of a prison sentence but also renders your bankruptcy petition invalid.
If you have substantial assets that you want to protect, the most effective course of action is to give the asset away and then delay two years. In this manner, no red flags will be raised if you are asked if you have transferred any assets within the past two years, since you have not.
Clearly, not everyone can wait two years before declaring bankruptcy. In this situation, your best option is to seek exemption for the asset from liquidation. Depending on the state in which you file for bankruptcy and the type of property at issue, your request may be granted. If not, you should reconsider whether filing for bankruptcy is your best option.""
" - https://www.affordablecebu.com/
