If my father has to claim bankruptcy due to unexpected medical expenses, is it legal for a family member to purchase his assets?
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If my father has to claim bankruptcy due to unexpected medical expenses, is it legal for a family member to purchase his assets?
I think it’s legal as long as you pay face value. Is that correct? Any suggestions?
Asked on March 2, 2013 under Bankruptcy Law, Colorado
Answers:
Elena Eckert
Answered 11 years ago | Contributor
A family member may purchase the assets and, provided the fair market value is paid, such transaction should not be invalidated as fraudulent by a bankruptcy trustee. The proceeds of the sale of the assets will be a part of the bankruptcy estate, however, once the bankruptcy petition is filed.
However, all transactions conducted within certain period of time before a bankruptcy petition is filed are subject to scrutiny and there is always a risk of bankruptcy trustee "unwinding" the transaction.
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