One of the biggest mistakes people can make is to transfer away assets to friends or family members before filing for bankruptcy. A bankruptcy trustee can void transfers made while you were insolvent if you did not receive reasonably equivalent value in return. In other words you can sell your house for fair market value without problems but not for $10.
When the trasnfer is to an insider which includes family and certain people involved in your business, the trustee can void transfers ocurring up to two years before filing and possibly longer under state law.
The lesson is don’t put stuff in other peoples’ names because they can still lose the asset if you or they file for bankruptcy.
