transfer of assets

[pa308]

By definition what is a transfer of assets. Basically is buying something not on credit but for cash considered a transfer of assets in regards to a trustee question? i.e. Have you transferred assets question on statement of financial affairs. Is a purchase of an above ground pool a transfer of assets (cash for pool)?

[lrprn]

From The Bankruptcy and Financial Center at http://www.forbankruptcy.com/pages/faq.html

"14. CAN I TRANSFER ASSETS PRIOR TO FILING BANKRUPTCY?
Certain transactions can be set aside as fraudulent. If you transfer assets to a friend or relative without receiving a fair price or consideration in return, the transaction is voidable as fraud. It is improper to transfer assets to others prior to filing bankruptcy so as to deprive your creditors of their right to satisfy their claims out of your assets.

However, you are entitled to transfer assets into exempt property which you may keep free of creditors' claims. You should always discuss any transfers of assets with an attorney before your bankruptcy is filed."

Frankly putting in a pool using money that would go to your creditors does fit the law's definition of fraud. However, if you can protect the pool with your exemptions, there won't be anything the trustee can do about it. Talk to your lawyer.

[SinkingFast]

I don't think so. But ask attnys to be sure.

Mostly,........ What that question is referring to is,.........

Did you sell a car?? Did you sell your house?? Did you sell stocks and bonds?? Type of thing.

You're referring to taking a possibly non Exempt Asset, Cash, and converting it into a possibly Exempt Asset, a pool for your home.

The bigger question, in this case, is gonna be,......... Is a pool necessary for the health, support, and safety of the Debtor and/or the Debtor's Dependents.

If you were spending the money on a new roof, or a new heating/AC system, the answer would obviously be "Yes".

But a pool??!! Do you have a special need for a pool?? A disability or an injury for you or one of your Dependents where swimming or water aerobics is a prescribed therapy??

Or are you just looking to unload some money you don't wanna pay to your Creditors??

[pa308]

I'm not trying to game anyone. I had this done in July for my twin 8 year olds. My question is in regards to the statement of financial is it a transfer when they look back. It wasnt a payment to a creditor because it was a cash transaction for value no insider, no cheating just a dumb purchase. I'm not looking to unload cash, i have no more to unload.

[SinkingFast]

It's a done deal and it occurred a while back. I thought you might be talking about doing something now or in the not too distant future.

All of us do things that are "normal course of business" at the time. Until we sit down and face the fact that we're not Solvent. And looking back to when we bought the "whatever" several months ago,.......... We weren't solvent then either. We just didn't realize it at the time.

You do have kids. Lots of people with kids install above ground pools while the kids are younger. Then get rid of the pools later when the kids are no longer at home.

It's been several months. Possibly a few more before you actually get to filing.

Most times, Trustees only ask to see the last 3-6 months of bank statements.

But, just to be on the safe side,.......... Definitely tell attnys you Consult with about it. They may not see it as a big deal. Or they may wanna disclose it up front. Depends on the attny you hire and/or the Trustee you happen to draw.

[pa308]

I apologize for not stating it clear enough. I guess my question then is what form would it be disclosed on? Would it be on the statement of financial affairs?

[SinkingFast]

A pool is an improvement to your home, so it would now fall under your Homestead Exemption.

It's really gonna depend on where the funds came from.

If the money was in your checking acct, just laying around, and you spent it,.......... Depending on how far back the Trustee asks for Bank Statements, you may not need to say anything about the pool

If you closed out a Savings Acct when you had the pool installed or something like that, that's a whole different story.

If you closed an acct or sold stocks or something like that, you'd have to disclose that transaction and then tell what you did with the money. That would be detailed on Form 7. Line 10 for "Other Transfers" and Line 11 for "Closed Financial Accounts."

[pa308]

the money was in a transition account from an annuity. it was around 4 k for the pool. when the balance in the account fell under 1k they sent me a check for the balance (750) and closed the account. i put that check in my checking and used for everyday expenses.