Danger of Fraudulent Transfers in a Bankrutpcy

Fraudulent transfer of an asset in a Chapter 7 bankruptcy or a Chapter 13 bankruptcy usually occurs when a person knowingly transfers an asset – house, car, equipment, business, cash, stock, etc. – to another person or company to avoid losing the asset to a creditor or to the bankruptcy court.  A fraudulent transfer can be reversed or voided by the bankruptcy court resulting in the loss of the asset after all.  Any transfer of an asset prior to filing bankruptcy should be avoided, since it will most likely be scrutinized by the bankruptcy court.  The transfer of an asset to an insider, such as a relative or a business partner, will be scrutinized even more