CAN I TRANSFER PROPERTY TO A FRIEND OR RELATIVE TO KEEP THE BANKRUPTCY TRUSTEE FROM TAKING IT?
No! If you transfer any of your property to a relative, even by selling it, within 1 year of filing for bankruptcy, the bankruptcy trustee can reverse that transfer if it was transferred for less than the fair market value of the property. For example, if you gave your brother in law your car 30 days before you file bankruptcy because you did not want it to show up on your bankruptcy petition, the trustee has the power to sue your brother in law to get the car back. Unfortunately, some people try to make secret deals with friends or relatives before consulting with an attorney. Once you’ve transferred property like that, you can’t take it back. The bankruptcy court will still hold it against you, so don’t do it.
