Transfers Before a Bankruptcy

Submitted by Anonymous (not verified) on Sat, 06/27/2015 - 01:29
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There are several provisions that address transfers before a bankruptcy case - federal bankruptcy statutes, state statutes, and state common law. Transfers that violate these rules are subject to avoidance and the involved parties may face other serious penalties. A bankruptcy debtor who engages in fraudulent transfer can be denied his discharge in bankruptcy.

Solvency
Solvency relates to the ability of a person to pay debts are they mature or in the ordinary course of business. One key item looked to as to whether the transfer was fraudulent is the "solvency" of the transferor - the person who made the transfer. Solvency is often referred to as a balance sheet test - the value of a person's assets of all types are compared to the amount of his liabilities.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com