Philadelphia Business Daily

Is it ok to transfer ownership of aircraft to my corporation before bankruptcy filing?

I am thinking I may file bankruptcy in 6 months or so. The only last asset I have left is a small airplane. If I transfer ownership of this to my business which is incorporated, will this protect it from being sold by bankruptcy trustee?

Public Comments

1. You're not the first person to think of this, and the courts will look into past transactions. The bigger issue is that you obviously would be doing it to avoid including the plane in the bankruptcy, which is wrong on an ethical level. I don't know how far back the courts look at your transactions pre-bankruptcy, but I would think they would certainly look back at least six months. Talk to your lawyer.
2. That would be very unethical and the courts are likely to see the transfer made after the intention to file bankruptcy was made. Why not sell the aircraft? There is a good chance you wouldn't have to file for bankruptcy then.
3. Check this site out....this will show pertaining to your state, and give you some more bankruptcy info. Someone gave me this site on this forum and it's very helpful with information you do not know about debt and filing bankruptcy. http://bcsalliance.com/y_bankruptcy3.html Good Luck!