Maryland Bankruptcy Exemptions
The Maryland bankruptcy exemptions and the statute of frauds
All people claiming Maryland bankruptcy exemptions must remain aware of the Statute of Frauds. This archaic statute originated in medieval times, and survived today from necessity. In the most basic sense, the law requires all conveyances of real estate to be evidenced in a written document and conform to the requirements and restrictions applicable for legally enforceable deeds. There are no oral deeds to real estate, and the failure to file a deed with the clerk does not invalidate the deed among parties to the transaction, but is not effect notice to other parties. Unfilled deeds play havoc upon legal proceedings, and especially cases pending before the Maryland bankruptcy court.
Fraudulent transfer prohibitions
Both the Court and the Trustee carefully review all transfers of land, real property interests and homesteads during the one year before filing. Undocumented transfers of property always raise suspicion, as do un-filed deeds, preferential transfers to family members, relatives and close personal acquaintances. The Court is legitimately concerned in all cases with preventing the waste of assets and moreover, strictly punishes fraudulent conveyances designed to defraud creditors.