If someone files bankruptcy and gives all his assets before his creditors get does he have this right to do so?
April 15th, 2010
under the law? Also, does the church have to return the assets that was given?
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The bankruptcy laws require that you disclose all transfers of property worth more than a few hundred dollars before filing, up to 5 years before, depending on the transferee. Failing to disclose those transfers subjects the debtor to federal felony charges, and the trustee can compel the transfer of the property to the trustee. Any exemption in the property the debtor would otherwise have had is lost. The trustee then sells the property.
The trustee or any creditor can object to the discharge, since it is illegal to make yourself bankrupt by giving away your money or assets, so the debtor may have spent money for a bankruptcy that will turn out to be useless.
That would be what’s called a fradulent conveyance. If you got property from a bankrupt buddy, prepare to give it back. Same rules apply to the church, at least theoretically.
Before my brother lost his home thanks to his ex wife…they had a few weeks to take what property they wanted out of the home…and on the property. Hell, I think they had about a month. It was her fault they didn’t get everything and they lost it to start with!!!!!! She used his good credit and racked up bills and he didn’t know about NONE of it until the creditors came after him!!!!!!!!!! UGH!!!!!!!!!!! I think it depends on what you are talking about…cars, house, whatever…