The Hidden Dragster & Why You Never Lie in Bankruptcy
I often have clients ask the same question. I tell the client “sure, you can give the house, car or whatever to your friend/relative for free or $1. The bankruptcy Trustee will be glad to take it away from them and sell to pay your creditors.” Often the asset they are trying to protect can be protected if they are in their own hands but cannot be protected after the transfer.
Example of a Lie in Bankruptcy
I had husband and wife clients many years ago that decided to not tell me about or list a dragster they owned as an asset in their bankruptcy. After all, he wanted to keep it and since it was not registered with the Department of Motor Vehicles they though no one would know about it. (more…)