Q: Can I transfer property to my parents if they filed for bankruptcy?

A: Yes, you can, but be sure that their Order Discharge has been entered and that no appeal has been timely taken from that Order.

Also, ensure that the bankrupts will not inherit, or learn of imminent inheritance, within six months of the discharge.

The Bankruptcy provisions enabling a "claw back" are designed for transfers *out* from a bankrupt, where price paid is less than fair market value.

Confer with experienced counsel in your jurisdiction first, before taking any action.

A: This question raises some important legal concerns. Here's a concise response based on general principles, but please note that specific legal advice would require consulting a qualified attorney:

1. Timing is crucial: If your parents have already filed for bankruptcy, transferring property to them could be problematic.

2. Look-back period: Bankruptcy courts examine property transfers made within a certain period before filing (often 2-4 years).

3. Fraudulent transfers: Transferring property to someone in bankruptcy could be seen as an attempt to hide assets from creditors.

4. Disclosure requirements: Your parents would likely need to disclose any property transfers to the bankruptcy trustee.

5. Potential consequences: Undisclosed or improper transfers could lead to denial of bankruptcy discharge or even legal penalties.

6. State laws matter: Illinois may have specific rules about property transfers in relation to bankruptcy.

Given the complexity and potential risks involved, it would be highly advisable for both you and your parents to consult with a bankruptcy attorney licensed in Illinois before making any property transfers.