Legal Question in Bankruptcy in Florida

Encumbering Assets Before Bankrupty

I started a business with about $200,000 in loans which I am personally responsible (even though they were for business purposes). My business is failing despite vigorous marketing efforts. I will probably have to declare business & personal bankrupty in 6-12 months. I am married - my spouse does not want to declare bankruptcy. Unfortuneately, my spouse's name is on some of the credit cards maxxed out by business purchases. I would like to try to keep our cars. My car is titled in both our names, my spouse's title is held in my spouse's name only. Both are paid off.

1. If we borrow against the cars, and fund a retirement program for myself & my only employee (who happens to be my spouse) is the trustee likely to deem that fraudulent?

2. If we borrow against the cars, and buy an inexpensive trailer and declare that our primary homestead residence, is the trustee likely to deem that fraudulent?

Thank you for your help!


Asked on 11/02/00, 11:56 am

1 Answer from Attorneys
Alexander M. Rosenfeld Rosenfeld & Stein, P.A.

Re: Encumbering Assets Before Bankrupty

If the purpose of the proposed transactions is to defraud the creditors, then you will face difficulties. I suggest you consult with competent counsel in order that appropriate proceedures can be discussed and that you be best protected for the time when it becomes necessary to file. If you are in south Florida, call me.

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Answered on 12/04/00, 4:32 pm


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