How Long Should I Wait to File Bankruptcy After Transferring a Title to a Spouse?

• Bankruptcy laws limit the amount of time between a property transfer and bankruptcy dischargeTransfer of money from hands in hands image by Irina smolina from Fotolia.com
  
  

After One Year

• A year should pass between the transfer of property and a bankruptcy petition. Keep all documents to validate property value and transfer date to avoid denial of discharge.
  
  

After Two Years

• The trustee can recover property transferred within two years of the bankruptcy filing date if the property was transferred for less than fair market value, or in an attempt to hide an asset.
  
  

Bottom Line

• Do not transfer property to protect assets from creditors. This fraudulent transaction may lead to the loss of property and a bankruptcy discharge. Consult an attorney for more information regarding property transfers.