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Follow on Google News | Bankruptcy "Fraudulent" Transfer of Assets in GeorgiaA fraudulent transfer of assets prior to bankruptcy may result in a denial of your Chapter 7 bankruptcy relief.
By: Bankruptcy Chapter 7 In the following real life cases, the fraudulent transfer rules that apply in Georgia bankruptcy cases yield very harsh results: In the Davis case, the debtor transferred a house to his wife, then, after meeting with a lawyer, had his wife transfer it back to him. He then filed Chapter 7 within a year of getting the title back in his name. The 11th Circuit Court of Appeals said “no” and denied his discharge. Even though he had tried to fix the problem, he still acted with wrongful intent within a year of filing. In the Future Time case, a debtor quit claimed his interest in a house to his wife. The house was fully mortgaged and no equity was transferred. The Bankruptcy Court said “no” – it does not matter that no value was transferred; In Georgia, any transfer of property in the year prior to filing – especially that of a house or a car – is likely to create problems. Even transfers to strangers for full value can be a problem. What can you learn from this? if someone has a claim for money damages against you, do not try to protect your assets by giving them away or selling them for pennies on the dollar – this will not work to protect those assets -before trying to dispose of any property when facing a claim for money damages, talk to a lawyer first -if you have already transferred property come totally clean with your bankruptcy lawyer – not telling him will only make matters worse Ironically, Georgia bankruptcy courts are more forgiving and willing to give a debtor the benefit of the doubt when it comes to a debtor’s failure to disclose assets, which can also be a basis for the denial of discharge under Section 727. In transfer cases, just about any transfer for any reason will likely be deemed “fraudulent” For more information visit http://www.bankrupcy- # # # Bankruptcy Chapter 7 distributes helpful information through its network of websites, blogs, press releases, and newsletters. End
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