Old Fraudulent Transfer v Continuous Concealment

A debtor’s discharge can be denied if the debtor fraudulently transfers an asset within one year of the filing of the bankruptcy. In Florida, a chapter 7 trustee can recover the asset that was fraudulently transferred within 4 years of filing of the bankruptcy.

However, what if on paper the debtor transferred a business more than 4 years ago, but really retained the benefits and control of the business. The debtor is really the secret or equitable owner of the business, but does not list this interest as an asset. The debtor’s discharge can be denied for continuing concealment. See In re Bellassai, Case No. 11-CV-61578(Williams)(March 22, 2012), affirming a decision by Judge Olson in Case no 09-01568, 451 BR 594(2011).

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