Expert: Mark J. Markus- California Bankruptcy Attorney - 3/1/2009

Question
I lost a good paying job and moved back to AZ. Now I can only find part time work for much less per hour. I recently signed a motorcycle and old truck over to my fiance for no money. Just because he helps me with bills. I have large credit card debt that has been building for several years, plus 2 mortgages. 1 here in AZ, and my home in TX that has not sold yet.  Do I need to wait a certain amount of time because of the titles I signed over?

Answer
This is what is known as a "fraudulent transfer."  

Assuming that you don't want your fiance sued to recover the value of the assets you transferred to him, you would need to wait some period of time before filing a bankruptcy to prevent the Trustee from seeking to recover the value of the transfer.  The amount of time depends on the laws of, most likely, Arizona (unless the transactions took place in another state.  I have no idea what Arizona's laws are, but in most states it is a minimum of 4 years from the date(s) of transfer.  (In California it is 7).  You should also understand that this is not just a bankruptcy issue.  Your creditors can sue her to recover the value outside of bankruptcy during that time period.

You may want to consider having him transfer the titles back to you and then, hopefully, be able to exempt those items in your bankruptcy, but you will need to consult with a bankruptcy attorney in your area to advise you further on that.