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  1. #1
    Join Date
    Sep 2016
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    Default What to Do if the Bankruptcy Trustee Accuses You of Making a Fraudulent Transfer

    A Chapter 7 Trustee has sued a debtor, claiming that the debtor engaged in a fraudulent transfer with a family member. The debtor disputes the trustee's claim, but doesn't have a lawyer and doesn't want to have to hire a lawyer to defend against the trustee's claims. The trustee is willing to settle for 50% of the disputed amount. Should the debtor settle, or should he try to fight the trustee?

  2. #2
    Join Date
    Sep 2005
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    Default Re: What to Do if the Bankruptcy Trustee Accuses You of Making a Fraudulent Transfer

    It's impossible to assess whether it would make sense to fight the trustee without knowing the facts of the case, or the amount that the trustee is trying to recover. As a transaction with a family member is not going to appear to be at arm's length, the key here is whether the debtor can reasonably show that the transaction occurred for full and fair value -- over the trustee's assertion that the transaction was for considerably less than market value.

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