I recently had a couple of clients who had a car repossessed and thought it would be a good idea to sign over their other vehicles to relatives to keep them safe from creditors. Rule of Thumb – it is NEVER a good idea to transfer assets prior to filing for bankruptcy. One of the first questions the trustee will ask you is if you have transferred any assets to friends or relatives within a year of two of filing. If the answer is yes, the Trustee will ask you what you received for the asset. If its less than full value, or if you did it to protect the property from creditors, the trustee may consider the transfer a fraudulent transfer and ask that the property, or its value, be returned to the Circuit Court. Unfortunately, your reasons for signing over the property will not protect your friends or family from a motion to turn over to the trustee.
