1 Year Transfer of Prop.

[Dollar Bill]

I have read a few posts about the 341 meeting. My question....some posts mention that the trustee asks whether there has been a transfer of prop in the last year. Can there be a transfer of prop after 1yr? say 1yr and 3 months? Will the trustee suspect frad if 14 months ago?

[SinkingFast]

The Trustee may not even ask about it. Since you're over a year, you can honestly answer NO to that question. The Trustee is looking for assets that have been dumped at low, low prices. Or assets sold for a good price to an Insider. Insiders are family, friends, close business associates.

But,........... As a CYA, dig out your Closing Documents. For us, it was the HUD1 Statement. Shows Buyers' and Sellers' names, how much paid, and where all the money went. If the timing does become an issue, you've got your paperwork to back up your explanation.

[HHM]

However, I think your petition actually asks if you have transferred real estate in the last two years. (I honestly forget since I haven't looked at the Petition Paperwork in a while)

In any event, the trustee may not ask, but that does not mean you are in the clear. The look-back period for property transfers in BK can be up to 10 years in some circumstances. Most trustees only look back 1 to 2 years (as it gets exceedingly difficult to prove intent to defraud after two years). However, if the transfer was legitimate (i.e. you received fair market value), then it really doesn't matter when the transfer was made as there is nothing the trustee can do...if the transfer is "less than" legitimate, then the trustee can go back 2+ years to undo the transfer.

[Dollar Bill]

Thank you all very much.