Some transfers may be set aside by a bankruptcy trustee. Sometimes bankruptcy courts need to decide if a particular financial transaction was in fact a transfer. Generally, the courts will focus on whether that transaction reduced the net value of the property available to pay the debtor’s creditors. If so, then that was a transfer. The focus will then shift to whether the debtor received anything of adequate value in exchange for that transfer.
These are thoughts from a Maryland Bankruptcy Lawyer
Ronald J. Drescher
Drescher & Associates, P.A
4 Reservoir Circle
Baltimore, MD 21208
Fax (410) 484-8120
Practicing in Maryland, Delaware, Virginia, Pennsylvania