My name is Ron Drescher. I’m an attorney
practicing bankruptcy and commercial litigation in Maryland, Delaware, Pennsylvania and Virginia. Today, I’m going to answer the question,
“Should I transfer property to myself and my wife and then file bankruptcy?” Well,
the short answer to that question is definitely no. Don’t do that because that will be considered
a transfer more or less within a year before bankruptcy with the intent to defraud, hinder,
or delay your creditors, and if you do that, the court will deny you a discharge if the
trustee or some other creditor wants to bring that action. You have to disclose that transfer. Now, why would try to transfer property to
yourself and your wife right before the bankruptcy? Well, if you live in a state that honors tenancy
by the entireties, which is a special way to hold property jointly with your spouse,
then none of your creditors will be able to seize and sell that property in your bankruptcy
case because you’ll own it in a special, asset-protected way. But because you moved
that property from a condition where they could seize it to a condition where they couldn’t
seize it shortly before your bankruptcy, the Bankruptcy Code says that’s fraudulent to
your creditors, it shows a form of dishonesty, and it will bar your discharge. That’s why
it’s very important if you are going to do pre-bankruptcy planning that you are very
careful and prudent and keep an eye out towards the consequences that may happen if you do
it but you don’t do it with the correct timing in mind. My name is Ron Drescher. I’m an attorney
practicing bankruptcy and commercial litigation. If you’re concerned about the way you hold
assets and you’re contemplating bankruptcy, please pick up the phone and call me. I would
love to hear from you.