I want to sell my property to a relative for $10, then file bankruptcy. How long do I have to wait?

A transfer like that, a "pretended" sale to a relative or friend, can be considered a "fraudulent transfer" under Texas law. And a bankruptcy trustee can use Texas law to go to Bankruptcy Court and seek to reverse or cancel transfers like that.

The statute of limitations on such a transfer is 4 years. In other words, if a person transferred property to a family member for $10, a creditor or a bankruptcy trustee could sue the relative to get the property back, for as long as 4 years after the transfer was completed.

Not only that, but if a person made such a transfer within 1 year of filing a bankruptcy case, with the intent to keep the property from the bankruptcy trustee, the debtor's discharge of debts could be denied, and it may even constitute a bankruptcy crime under Title 18, U.S. Code, which can result in a substantial fine or even prison.

J Thomas Black
Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization