Seeking a Homestead Exemption? Do Not Fraudulently Convey Your Home.

Prior to the filing of his bankruptcy, the debtor conveyed his residence to his parents. This conveyance apparently constituted a fraudulent conveyance. The debtor claimed the property as exempt in order to protect some of the equity. Bankruptcy Code Sec. 522(g) bars a debtor from exempting property which was fraudulently conveyed.  This case is important in illustrating the dire risks of any type of asset protection strategy.

View the order here

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