FRAUDULENT TRANSFERS.


Fraudulent transfers occur when a person transfers assets of value to friends and family prior to filing for bankruptcy. Following the bankruptcy, the person either has the property transferred back to them or they continue to benefit from the property. If it is shown that this occurred the Court or Trustee will have the authority to undo the transfer and give the property to the creditors. What’s worse is that if the property had been entitled to an exemption, the right to exempt the property is lost. If you plan to give any property to family or friends prior to filing a bankruptcy case, please be sure to contact Washington Debt Free first to determine your best course.