St. Louis bankruptcy lawyer Frank Ledbetter specializes in Chapter 7 and Chapter 13 bankruptcy
in Missouri. He warns against asset transfers during debt relief. Hi, I’m St. Louis bankruptcy attorney Frank
Ledbetter. I’ve been a St. Louis bankruptcy lawyer since 2003. If you’re struggling with debts, you want
to be very careful before you sell or give away things you own before consulting with
a bankruptcy attorney, particularly if you transfer those things for less than fair market
value. If you file Chapter 7 bankruptcy or Chapter
13 bankruptcy, you will need to disclose on your bankruptcy documents any things you owned
which you sold or gave away during the two years prior to the filing of your case. Further, in Missouri, if the sale or gift
of the asset was within the last four years, the bankruptcy trustee may be able to void
the transfer if it appears that the sale or gift was done to shield the asset from creditors. If someone files bankruptcy in Missouri within
four years of selling or giving away an asset, that asset may be subject to being recovered
by the bankruptcy trustee and sold with the proceeds to be paid to the client’s creditors. Sometimes, people get the notion that they
may transfer an asset which might have more equity than the client would be allowed to
have in in the asset, for example a car with over $3,000 in equity, to a friend or relative
and that way prevent liquidation of the asset. However, such a transfer would likely not
allow the protection of the asset if done within the four years prior to the filing
of bankruptcy. Selling assets for fair market value may be
permissible shortly before filing a bankruptcy in order to obtain money to pay living expenses,
but it is always advisable to consult with a bankruptcy attorney before selling or giving
away assets if the person might need to file bankruptcy. If you’re unable to repay all your bills on
time, you may call today to schedule a no-cost, no-obligation consultation regarding your
rights to obtain debt relief under Chapter 7 bankruptcy or Chapter 13 bankruptcy. Or if you want to know more before you call,
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