As a Pasadena Bankruptcy Attorney, I often have clients attempt to transfer property out of their name prior to declaring bankruptcy. The thinking is that they would rather give what little property they have to friends or family rather than have it taken by creditors. This is both dangerous and usually unnecessary.
Bankruptcy Exemptions under a Chapter 7 Bankruptcy are often very generous, and under a Chapter 13 Bankruptcy, you keep all your assets anyway as long as you maintain your monthly payments. In California, there are different systems of exemptions available, and often cater to those who are either homeowners or renters. Often times, the very property that one risks transferring prior to bankruptcy would never have been taken away in the first place. If a trustee discovers such a transfer, you can be prosecuted for Perjury and your Bankruptcy will almost certainly be dismissed. It is simply a foolish risk to take.
The key is to contact a Los Angeles Bankruptcy attorney who can advise you how to maximize your exemptions and avoid following popular myths related to Bankruptcy. Know the facts, knowledge is power, and know that if you feel you are doing something wrong there is a strong possibility it is illegal. Bankruptcy Trustees are usually experienced, smart, and have seen it all before.
