Legal Question in Bankruptcy in California

You cannot conceal assets in order to hinder, delay or defraud your creditors. Bankruptcy has offered powerful relief from debt for millions of honest debtors. But, the debtor cannot have his cake and eat it too.

Asaph Abrams

www.bankonitsd.com

Disclaimer: the above as well as any information found on our Web site is not legal advice and should not be relied upon. It does not create an attorney-client relationship. Unilateral communications may be misconstrued as they do not address all facets, nuances, and particulars, or all means of addressing a situation. This is strictly my opinion provided for general informational purposes and it pertains to California law. Seek legal and other professional counsel before acting in relation to bankruptcy. It's worth the cost.

As my colleague says, it's not a good idea! If it's already been done, the trustee may make the recipient disgorge the business, its assets, etc., or at least pay a fair share to the bankruptcy estate. On top of that, the debtor could be prosecuted and the bankruptcy denied. The whole thing could cause bad feelings among friends and family, as well.

There are time limits within which you are not allowed to transfer assets and then go bankrupt. The bankruptcy trustee would sue whoever you transferred the assets to. Consult a bankruptcy lawyer in person, because the law is complicated.