Wednesday, April 17, 2013

BANKRUPTCY LAW - FRAUDULENT TRANSFER

From the firm of Shenwick & Associates, here is a link to a recent bankruptcy case

IN RE PANEPINTO Case No. 12-11230K (Bankr. W.D.N.Y. Feb. 25, 2013)

The Court noted in part:

"The question is this: If someone who is insolvent, or is being sued, owns a wholly-exempt homestead free-and-clear, and (without consideration) transfers half ownership to someone else (in this case her husband), could any existing creditor sustain an action to set that transfer aside as a fraudulent conveyance under state law? (It is important to note that the many cases that address transfers of exempt property under 11 U.S.C. §§ 547 and 548 are of no application here because the transfer occurred four years before this Chapter 13 filing.

The answer in New York is “Yes. It may be set aside.”"

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