Posted: August 3rd, 2015
Chapter 7 Liquidation Trustee Right to Prevent Fraudulent Transfer.
Your friend Joe, owns a jet ski worth ,000. He is over his head with credit card debt that he cannot pay. After consulting with a bankruptcy attorney, Joe understands that the jet ski is not exempt and will be lost to the bankruptcy trustee if he files a Chapter 7 liquidation bankruptcy. Joe is insolvent ( his debts exceed all his assets at a fair market valuation, exclusive of his exempt property), so he and John agree that Joe will sell his jetski to John, but Joe still is permitted to keep possession of the jet ski and use the jet ski whenever he want to use it. When Joe files the Chapter 7 liquidation bankruptcy what action should the case trustee take concerning this type of transfer? Include a citation to the proper U.S.C.A. code section that covers this action. (Hint: Read the SUBJECT line of this discussion.)
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