Legal Question in Bankruptcy in Texas

Fraudulent Conveyance of Property in Bankruptcy

A close relative of my husband is preparing to declare bankruptcy. Exactly one year ago she deeded a property in another state to my husband without telling him that she was planning to go bankrupt. We sold that property and bought another one in Texas for her to live in. She has now decided to sue my husband for possession of this property in Texas because she has found a way to protect it from the bankruptcy. My husband has decided to simply give her the property rather than fight a close relative in court. If he does so between the time the one-year fraudulent conveyance period has expired and immediately before she declares bankruptcy, what would be the legal repercussions for us given the fact that we had no knowledge of the bankruptcy beforehand? What could happen to us if he gave it back to her after she declared bankruptcy?


Asked on 10/21/97, 10:33 pm

1 Answer from Attorneys
Bonnie Selby Bonnie J. Selby, Attorney at Law

Fraudulent conveyance. . .

In my opinion, based upon the fact scenario you presented, you should definitely contact legal counsel in your jurisdiction concerning this conveyance. The court trustee will be looking for "fraudulent conveyances" within that time period. What consideration was given for the property? Should you just "turn over the property", that would suggest there was no consideration given for it . Is this rental property or personal residence? Many questions an attorney will want to research for you.

Read more
Answered on 10/26/97, 5:33 am


Related Questions & Answers

More Bankruptcy Law questions and answers in Texas