A Bankruptcy Lawyer in Guam Explains How a Transfer May Be Fraudulent

There are certain circumstances in which the transfer of assets in a bankruptcy case can constitute fraud. Your bankruptcy lawyer in Guam can provide you with guidance and information that can help you avoid these pitfalls.

Concealment

Bankruptcy Lawyer in GuamProperty that is transferred between a period of from 90 days to two years prior to filing bankruptcy for the purpose of hiding it or holding up the procedures may be seen as fraudulent. Your bankruptcy lawyer in Guam will caution you that the trustee may seek a fraudulent conveyance action if he/she has reason to believe a debtor has engaged in such activities. In the case of employment contracts, the above still holds whether the business was in or out of debt at the time.

Fair Consideration

Property transferred without fair consideration is also considered fraud. If, for example, a debtor has a stamp collection worth $2,500 and he sells it to a friend for $10 to keep it from being turned over to the trustee (with the proviso that the friend will give the collection back at the conclusion of the case in return for the $10), the sale would be fraudulent. Your bankruptcy lawyer in Guam can explain that ten dollars cannot be considered fair consideration for a collection worth two hundred fifty times that amount. This makes the sale subject to avoidance.

Deception

If a trustee suspects and can demonstrate that a debtor has transferred funds to a self-settled trust within 10 years of filing for the purpose of misleading creditors or to get around paying a claim, the transaction may be voided as fraudulent. It rests with the trustee to prove that the transfer was not made to protect assets in general, but with motives of deception.

Fraudulent v. Non-Fraudulent Transfers

Your bankruptcy lawyer in Guam can advise you that when planning asset protection, awareness of transfer fraud is a vital consideration. Anyone, other than a good faith purchaser or someone who makes a claim under a good faith purchaser, who sets up a conveyance can have that transfer undone by his/her creditors under the Uniform Fraudulent Transfer Act.

Don’t Take Chances

Be sure you fully understand what does and does not constitute a fraudulent transfer by seeking the advice of a skilled, experienced bankruptcy lawyer in Guam.