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My lawyer didn't warn me about quit-claim transfer of property about 1 yr 11 months b/f filing my ch. 7, can I sue 4 malpractice

Burbank, CA |

I had a 50% property share (no encumbrances) that I transferred back to my mother and then I filed for bk after a year and 11 months. my attorney knew. trustee called it a fraudulent transfer. If I knew about the two year period, I would have waited another month to file. Is my attorney liable? ?

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Best Answer

FYI, the 2 year period is only the amount of time you are required to report the transaction to the bankruptcy trustee. If the transfer was improper, the trustee may not be limited as to time to undo this transfer, and I have seen situations in which the bankruptcy trustee undid transfers that had taken place over 4 years before the bankruptcy was filed.

Hope this perspective helps!


The answer will depend upon the reason or reasons why you transferred your 50% ownership share to your mother. Was it to delay, hinder or defraud creditors? Was it a sale with exchange of consideration? Was it for repayment of a debt you owed to your mother?

Frank W. Chen is licensed to practice law in the State of California. The information presented here is general in nature and is not intended, nor should be construed, as legal advice. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, consult your own attorney.






I couldn't afford the property taxes. also tenants had been evicted (for not paying the rent.) I transferred to get rid of the expenses. No consideration.


Has there been a consequence in the bankruptcy to you due to the transfer? If you are going to be denied a discharge, then it is more likely that you have a claim against the lawyer. If the trustee merely reversed the transfer and distributed the proceeds to creditors, then it seems less likely.

My answer to your question is based on the facts that you provide in your question. Additional factual details about your situation could change my answer completely. The law in inherently uncertain and always subject to change.

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