Bankruptcy law

[eddypun]

Hi guys and gals...

Am helping out a close friend in this, so I really need good advice from the floor.

Correct me if I'm wrong, if a person transfers his properties to other people, and within 2 years he goes bankrupt, by right the property can be 'tarik balik' to be auctioned out.

HOWEVER, if a person knows that he owes the bank a lot of money, and wishes to declare himself bankrupt, is there a way to sell his existing property (which is still on loan) at a ridiculously below the market price (perhaps to his cousin), and leave the remainder of the loan unpaid - then declare bankrupt.

Will the law(yer) who is investigating this find out and take back the property from his cousin? Legally, the property has been sold.

Thanks for your advice. Is there anyone who can recommend a legal advisor or an accountant who has knowledge in this?

[shali]

It doesn't matter whether the bankruptcy petition was made by the bank or by the person. The bankrupt will still need to swear in his statement of affairs that he did transfer a landed property 24 months prior to the date of petition. You do it at your own risk. Further, there is absolutely nothing to stop creditors from pursuing the issue if they feel that there was a conspiracy to defraud them by some clever design (like you described).

Hope that inspires.