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Bankruptcy and Quit Claim Validity

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AZRE

Junior Member
What is the name of your state? AZ

I have a property in escrow and have discovered that one of the owners filed for bankruptcy 10/1/4 and had it discharged 1/11/5 and closed 1/26/5. They Quit Claimed their interest in the property to their partner 8 months prior to filing, however the Quit Claim was never recorded.

The title company discovered they never included the property on their BK disclosure. Will the unrecorded Quit Claim be sufficient?

Thanks!
 


Ladynred

Senior Member
Dumping assets, as in the quit-claim a mere 8 months before filing for bankruptcy can get you charged with FRAUD. A quit-claim that close to filing would be considered a fraudulent conveyance and the Trustee could actually reverse it AND dismiss the bankruptcy for fraud or even have the debtor brought up on charges.
 

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