QUESTION
What is the claw back period of gifted funds during a bankruptcy?
Asked on Nov 14th, 2012 on Bankruptcy - North Carolina
More details to this question:
Is there a time period where the bankruptcy court can claw back funds that was given away as gifts to family, either before or after filing bankruptcy, in order to pay off creditors?
9 ANSWERS
Bankruptcy Attorney serving Hartland, MI
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Law Office of Doug Dern & Associates
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That would be 2 years.
Answered on Jun 26th, 2013 at 9:04 PM
Daniel James Wilson
Look back in BK law is two years. If the transfer was fraudulent under state law 4 years.
Answered on Nov 16th, 2012 at 4:05 AM
There is a requirement to disclose information about payments to "insiders" on the bankruptcy paperwork but the mere disclosure requirement is not a limit to how long a bankruptcy trustee may go to seek a "claw back" from a debtor if the circumstances are sufficiently outrageous. This would be a discretionary judgment call by the trustee based on a totality of facts and would be up to the judge to decide for sure.
Answered on Nov 16th, 2012 at 3:44 AM
Money that is given to creditors 90 days before a filing can be considered a preference and recovered by the bankruptcy trustee if they can show the creditor received more benefit than he would have received in a chapter 7 liquidation. Regular payments to creditors are not part of this. Payments or gifts to family members can be recovered if they were made within the last year. Once you file bankruptcy you have more freedom to make these payments or gifts as you choose. You should contact a bankruptcy attorney to discuss your options.
Answered on Nov 16th, 2012 at 3:35 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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The look back period on payments to family, assuming not paying your other debts, is one year. The trustee could argue two years for fraudulent conveyance. Make sure you talk to a competent bankruptcy attorney. Please understand that bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
Answered on Nov 15th, 2012 at 4:57 AM
Appellate Practice Attorney serving Cheyenne, WY
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Lynn Boak Attorney at Law
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The "clawback" period is normally two years.
Answered on Nov 15th, 2012 at 4:50 AM
Bankruptcy Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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90 days or 4 years for fraudulent transfers.
Answered on Nov 14th, 2012 at 4:27 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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It depends upon the facts, none of which you have given. The trustee can marshall assets. Gifts to family members which are big can be gone after. Generally it is for two years prior to the bankruptcy filing.
Answered on Nov 14th, 2012 at 4:25 PM
Bankruptcy Law Business Attorney serving Asheville, NC
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Pitts, Hay & Hugenschmidt, PA
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The trustee has the ability to recover any transfers for less than fair market value in the two years prior to the filing.
Answered on Nov 14th, 2012 at 4:23 PM