How Long Before I File for Bankruptcy Can I Transfer Property?

Two Years Before Bankruptcy

A person who transfers property to another person in an attempt to protect it from creditors cannot do so within two years of filing bankruptcy. Transferring property within one year of a bankruptcy petition could preclude you from filing Chapter 7 bankruptcy at all.

Do Not Attempt It At All

Transferring property for the sole purpose of hiding the asset from investors constitutes bankruptcy fraud, according to McDonald Law. If it looks like you are trying to hide assets, the bankruptcy judgment can simply reclaim the property and find you in contempt of court.

Bottom Line

If you plan to transfer property at less than market value, you must do so at least two years before filing bankruptcy, according to BankruptcyLawNetwork.com. However, you should avoid hiding any property. You could lose the property and the right to discharge from legally paying back your debts.

References

• BankruptcyLawNetwork: Transferring Property Before Filing Bankruptcy, Without Being Paid For It: How to Fix the Problem, Part One of Two
• McDonald Law: Do's and Dont's Before Bankruptcy