Preference and Fraudulent Transfer Claims

Debtors frequently, either in ignorance or with bad intent, disburse property improperly prior to filing bankruptcy. For example, TBF Law Group Bankruptcy Practice has encountered consumer debtors attempting to transfer title to real estate on the eve of bankruptcy and for no consideration or value–all seemingly for the illegal purpose of hiding property from the bankruptcy estate. Similarly, the Bankruptcy Practice Group has discovered small business debtors paying certain unsecured creditors in full (and for large amounts) while paying nothing to other unsecured creditors–i.e. preferring one creditor over another in violation of the bankruptcy code. These types of scenarios implicate the legality of the transfers and/or whether an undue preference in disbursement occurred.

TBF Law Group Bankruptcy Practice Group can help you recognize and trace preferential disbursements and fraudulent transfers. Working through the Bankruptcy Court and a trustee, our practice group can help you recover assets otherwise squandered by the debtor. Alternatively, if you or your business have been accused of improperly distributing or transferring funds, we can assist in explaining the propriety of those transactions. Our Bankruptcy Practice Group strives to ensure that funds properly are disbursed to the appropriate creditors pursuant to federal law.