Common Bankruptcy Fraud Questions
A San Francisco bankrutpcy attorney sites Common Bankruptcy Fraud Questions
oth federal bankruptcy law and state law allow for certain transactions to be avoided in bankruptcy if the transactions were carried out with an intent to defraud creditors. In addition, discharge from bankruptcy may be denied if the trustee assigned to oversee the case determines the debtor engaged in fraudulent transactions. Many debtors have bankruptcy fraud questions so it is important to understand what type of behavior raises flags with the courts.
Most bankruptcy fraud questions asked by debtors deal with what type of behavior is allowed leading up to the filing of bankruptcy. Debtors often want to know whether it is permissible to transfer some or all of their property to family members or friends in order for the property to stay out of reach from creditors. Generally transfers of property made prior to filing bankruptcy are avoidable and the property, if it is not able to be exempted, will be available to repay the creditors, if necessary. Bankruptcy fraud questions also focus on whether nonexempt property can be converted to exempt assets.
Although the federal bankruptcy code is rather liberal in the approach to what types of asset conversions are allowable, prohibiting only transfers made with an actual intent to defraud creditors, the bankruptcy code also allows trustees to use state law to avoid certain transfers. For example, in California, a trustee can avoid pre-filing transfers of nonexempt to exempt assets if the transfers violate the Uniform Fraudulent Transfers Act (UFTA).
In addition to questionable transfers, trustees also want to ensure that the debtor fully disclosed all relevant information in the schedules accompanying the bankruptcy petition. The trustee will often question the debtor if they believe a schedule was filled out improperly or if the trustee believes property was intentionally omitted. Those with bankruptcy fraud questions should consult with a bankruptcy attorney in order to appropriately prepare for bankruptcy planning and filing.
If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!
