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Lookback period for car and bank transfers?


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I am preparing to file BK7 in a few months, but through researching this site it looks like I may have some potential problems that may be beneficial for me to continue to wait. Nine months ago I sold a very low milage (but needed TON's of repairs) 10 year old vehicle to a family member for him to fix up at significantly below NADA price. Also, 18 months ago I closed some very large brokerage accounts to pay back some other family members, the funds were wired to my bank and then wired to them. Will they dig this information up during the BK proceedings? Do they have access to old bank and brokerage accounts? If so, how far will they research?

Learning as I go...

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I think the look back period for family member transfers is 12 months although I cannot be sure. Others may know for sure.

As for the car, If you think that will be an issue, find out the value from 9 months ago and try to get receipts/estimates for the work that needed to be done. The real value of the car would have been value minus work that needed to be done. That is quick and dirty however and I am sure that one could argue that the value would be less for time and effort to get the car repaired if they really wanted to. If the look back period is 12 months however and you do not file for 3 months, then you should be fine.

As for the brokerage account, if the look back is 12 months, you have no problems. If it is longer, you might want to consider waiting to file BK until the period has passed (unless you are forced to because of judgments).

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Yes, I do have some receipts for several thousand dollars of work that need to be done to the car to bring it closer to the NADA value. Will this help and avoid an issues?

*trying to find a decent affordable lawyer

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The standard lookback period is not always set in stone. It is going to depend on the value of the property transferred and the intent behind it. Trustees can go back years if necessary if they can show the intent behind the asset transfer was to avoid paying creditors or to give preferential payment to certain creditors. There is no time limit on how far they can go back for fraud.

If you are talking about a tens of thousands of dollars given to family members as preferential payments because you knew you were going to be filing for bankruptcy in a year, I can guarantee the trustee will go after your relatives to recover those funds.

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