The Bankruptcy Code requires a debtor to file with the Court any transfers of property made by the debtor within one year of the bankruptcy filing. In this case, the debtor failed to list any transfers within that one year period. In fact, however, the debtor did transfer 1/2 of his interest in real estate about five months prior to filing bankruptcy; and conveyed the remaining 1/2 interest in the same property just several weeks before filing.

The first transfer for 1/2 interest was without any consideration (no payment for the transfer), and the second transfer of the balance of debtor’s interest was for only $17,000, which was far inadequate consideration. Both transfers were to another person living at the same address as the debtor.

Section 727(a)(2)(A) of the Bankruptcy Code provides, in part, that the Court shall grant the debtor a discharge, unless the debtor, with intent to hinder, delay, or defraud a creditor, has transferred property of the debtor within one year before the date of filing of the petition.

Here, the Court found that debtor committed a fraud by secreting, and denied the debtor’s entire discharge.
County Real Estate Corp. v. Sheik Ishahak, 130 B.R. 16.

 

Author: Charles R. Harroun, Attorney at Law