Bankruptcy courts maintain broad authority to set aside transfers of property occurring before a case is filed. Both voluntary and involuntary transfers of property are subject to review for conformity with bankruptcy laws to protect the rights of creditors. Expect questions about prior property transfers, especially large items and cash transactions. Have documentation of large transfers ready. Courts routinely require complete written disclosure and perhaps oral testimony to clarify questions proposed by the court, trustees or creditors.
Before completing bankruptcy forms, organize your thoughts and all information included. Consult a qualified attorney to resolve legal questions and point out trouble areas. Accurate sets of bankruptcy forms withstand court scrutiny by providing full, complete and logical explanations of unusual items and further, identify the specific Code section or law that allows the transfer.
Note when completing forms: