Bankruptcy in Briefa service of the Moran Law Group |
Judge Randy Newsome on the limits of exemption planning
At a recent program of the Bay Area Bankruptcy Forum, Judge Newsome, a bankruptcy judge sitting in Oakland, California listed issues that "pressed the envelope" of permissible exemption planning.
- Loans taken out to acquire exempt property
- Transfers after entry of large judgment or other event creating liability
- Transfers made on the eve of bankruptcy
- Sharp dealing with creditors
- Transfers to insiders
- Less than adequate consideration for transferred property
- Debtors remain in possession of transferred property
Actions of this sort may provoke a challenge to the exemption in question, at best, and a challenge to the debtor's right to a discharge at worst.
back
02/16/03
