Debra Booher &Associates Co., Lpa Click here to get your free Legal evaluation
Call Us Today Toll Free

Court rules debt can still be discharged after asset transfer

Ohio residents who have more debt than they can afford to pay back may choose to file for bankruptcy. While considering bankruptcy, it is important for them to understand the laws about transferring assets. If valuable property is transferred before a bankruptcy filing, the action could result in a denial of a discharge.

Earlier in 2016, the U.S. Court of Appeals for the 9th Circuit affirmed a lower court's decision to allow a bankruptcy discharge despite an asset transfer. The debtor was a dentist who transferred a condominium that he owned to a trust fund after he filed for Chapter 13 bankruptcy. Though his first and second attempts to file for Chapter 13 bankruptcy were dismissed, he was subsequently approved for Chapter 7 bankruptcy.

One of the dentist's creditors was a former patient who had previously obtained a judgment award for medical malpractice. The former patient filed a petition to bar the dentist's discharge of the debt. According to the former patient, the dentist transferred his condominium with the intention of preventing creditors from obtaining repayment. However, the court later ruled in favor of the dentist since the transfer occurred more than one year before he filed for Chapter 7 bankruptcy.

As this case shows, Chapter 7 bankruptcy has several procedural requirements that must be followed for a case to proceed successfully to discharge. There are a variety of eligibility rules and regulations as well, which an attorney who has experience with these matters can outline to a client who is seeking debt relief.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Cuyahoga Falls Office
1350 Portage Trail
Cuyahoga Falls, OH 44223

Cuyahoga Falls Law Office Map

Beachwood Office
3401 Enterprise Pkwy.
Suite 340
Beachwood, Ohio 44122

Map & Directions

Independence Office
4700 Rockside Rd
Suite 415
Independence, Ohio 44131

Map & Directions

Westlake Office
1991 Crocker Rd
Suite 600
Westlake, Ohio 44145

Map & Directions

Canton Office
4450 Belden Village Street NW
Suite 204
Canton, Ohio 44718

Map & Directions

Ravenna Office
2633 St. Rt. 59
(Orchard Plaza)
1st floor
Ravenna, Ohio 44266

Map & Directions