What’s Your “PREFERENCE”?
You should be careful when considering your options in bankruptcy before selling any property or giving property away that could ultimately be considered a “preference”. A preference is when you transfer an interest in property before filing bankruptcy and typically within 90 days of filing. However, if you provide an “insider” such as a business associate, friend or family member with that property within one year of filing, the Trustee in your bankruptcy can also try to recover the property so that it can be fairly divided to your creditors in bankruptcy.
It is best to discuss the assets you own and not give away or sell any assets if you are considering filing for bankruptcy. This is something the attorneys at Pollak, Hicks & Alhejaj can give you advice on. Please call us for a free initial consultation.