Small Gifts Okay Before Bankruptcy

If you’re filing for Chapter 7 or Chapter 13 bankruptcy, the law does allow the transfer of small customary gifts to family members within one year before filing for bankruptcy. A small customary gift is usually defined as a gift with a value of less than $200. For example, giving your mother a $300,000 house for Christmas would not fall under the “small customary gift” definition; but if you gave your granddaughter a $150 doll house, this gift would probably fall under the $200 value according to the bankruptcy law.

Before you transfer or give anything of value to someone before filing for bankruptcy speak with you Dallas-Fort Worth bankruptcy attorney first. Any property transferred to another person within one (1) year of filing for bankruptcy can be subject seizure by the courts to repay your creditors.

By | 2017-12-21T01:24:52+00:00 October 27th, 2008|Uncategorized|Comments Off on Small Gifts Okay Before Bankruptcy