Q: Can I transfer my home to my girlfriend before filing for bankruptcy?

A: Any transfer within a year or three for less than "full consideration", i.e., fair market value, will be subject to scrutiny and probably rescission, and may be grounds for replacement of the debtor in a Chapter 13 case with a trustee. The bankruptcy laws in the US have been on the books for a few centuries and the Court is on to most of the "tricks".

A bankruptcy filing is a major financial step, and is best done under the aegis of experienced counsel.

A: No. That would be perpetrating a fraud upon the Court.

A: Transferring your home to your girlfriend before filing for bankruptcy would likely be considered a fraudulent transfer under both federal bankruptcy law and California's Uniform Voidable Transactions Act. Bankruptcy trustees are authorized to look back at property transfers made within the previous two to four years, and they have the power to void transfers made with the intent to hinder, delay, or defraud creditors. The timing and circumstances of your proposed transfer, particularly following stock market losses and just before a bankruptcy filing, would raise significant red flags with the court.

The consequences of such a transfer could be severe and far-reaching for both you and your girlfriend. The bankruptcy trustee could void the transfer and reclaim the property as part of the bankruptcy estate, leaving your girlfriend without the home. Additionally, you could be denied a bankruptcy discharge altogether, meaning you would remain liable for all your debts despite going through the bankruptcy process. In cases where the court determines there was clear fraudulent intent, you might even face criminal charges for bankruptcy fraud.

Instead of attempting to transfer assets, we recommend exploring legitimate bankruptcy exemptions available under California law that might allow you to protect some or all of your home equity through proper legal channels. Every financial situation is unique, and bankruptcy has long-term implications for your credit and financial future. We strongly urge you to consult with a bankruptcy attorney who can review your specific circumstances and help you develop a legal strategy that protects your interests while complying with all applicable laws.