OR call us at 602-456-6085 today.
When one faces creditors making threatening phone calls, letters from collection agencies, civil judgment from creditors, wage garnishments, repossessions, you can feel like you are under attack. As a result, many people make the mistake and begin transferring assets to loved ones to put them beyond the reach of creditors and then file for bankruptcy. Under 11 USC §548 of the Bankruptcy Code, a trustee may avoid any transfer of an interest of the debtor in property, or any obligation incurred by the debtor, that was made or incurred on or within two years before the date of filing of the petition.
There are two types of fraudulent transfers in bankruptcy. First, is actual fraud, involving the intent to defraud creditors. Actual fraud requires proof of intent from the person challenging the transfer. Second, sometimes called constructive fraud, involves two conditions: 1) in exchange for the transfer, the debtor received less than “reasonably equivalent value,” and 2) the debtor is unable to pay debts either at the time the transfer was made or as a result of the transfer itself.
When it comes to determining reasonably equivalent value there is no formula. Courts will look at all the circumstances surrounding a transaction to determine whether the exchange looks even. The Court will look at whether the sale was for fair market value, or whether it was made in good faith in the ordinary course of business.
Once a transfer has been deemed fraudulent, the trustee may recover the property, or the value of the property, and make it part of the bankruptcy estate. The one exception to this rule, is in the case of the “bona fide purchaser.” A bona fide purchaser is one who acted in good faith to purchase the property without notice of the outstanding rights of others to the property. Here, the person receiving the property will be allowed to retain the property or regain the value they paid for it.
In regards to asset protection, investing in a homestead is a great way to protect assets. Arizona has a generous homestead exemption in place that allows homeowners up to $150,000 of equity in their home. Further, consider increasing your insurance coverage, or investing in qualified retirement plans that are tax exempt. However, before using any of these potential methods, you need to contact a qualified Arizona Bankruptcy Attorney.
Other ways we may be able to help…
Our Locations
Phoenix Office
Wright Law Offices
2999 N. 44th St., Ste 250
Phoenix AZ 85018
Telephone: 602-456-6085 / 866-703-3287
Phoenix Law OfficeScottsdale Office
Wright Law Offices
7135 East Camelback Road, Ste 230
Scottsdale AZ 85251
Telephone: 480-845-0145 / 866-703-3287
Scottsdale Law OfficeTempe Office
Wright Law Offices
2238 S. McClintock Dr.
Tempe AZ 85258
Telephone: 480-845-0145 / 866-703-3287
Tempe Law OfficeAvondale Office
Wright Law Offices
12725 W Indian School Rd, Suite E-101
Avondale AZ 85392
Telephone: 623-258-4480 / 866-703-3287
Avondale Law OfficeMesa Office
Wright Law Offices
4856 E. Baseline Rd.
Suite #104
Mesa, AZ 85206
Telephone: 480-845-0145 / 866-703-3287
Mesa Law OfficeGlendale Office
Wright Law Offices
20325 N. 51st Ave., Suite 134
Glendale, AZ 85308
Telephone: 623-258-4480 / 866-703-3287
Glendale Law Office
What our clients are saying…

Mr. Wright and his staff were amazing. They made a negative situation a lot better and turned it into a positive. Could really tell they care helping people and I will refer their Phoenix Bankruptcy Attorney firm to friends and family. Thanks again.

I called around looking for the right bankruptcy lawyer and came across Benjamin Wright. He personally called me for the consultation seeing how I live in Kingman AZ. He was very helpful from the start and his staff was very friendly and explained any questions I had, sorry for all the questions. I would definitely recommend Wright law offices, and I do!! Thanks for everything, you made what seemed like a hard thing to do simple!! You guys rock!!!

Great lawyer, he really helped my mother out of a jam. She was totally new to bankruptcy and he talked with us for about an hour and a half to make sure she wouldn’t be worried.

Ben is a kind and down to earth attorney. He worked around my busy schedule as a single mom (school, full-time job, and daycare pick up and drop off times). He explained absolutely everything to me and was good about e-mailing. I am writing this review as a THANK YOU.

I had a very positive experience with Attorney Wright. He or his staff returned my e-mails and calls promptly (even after business hours occasionally). His fees were reasonable. He was patient with me when I showed up in court missing an important document. He is aggressive, but fair and nice.