In anticipation of filing a petition in bankruptcy, a debtor has the absolute right to convert nonexempt property into exempt property.

Question

Quizplus · Accepted Answer

This statement is false. The bankruptcy code prohibits debtors from converting nonexempt property into exempt property with the intent to hinder, delay, or defraud creditors. Such actions may be considered fraudulent and could result in denial of discharge or even criminal charges.

In Anticipation of Filing a Petition in Bankruptcy, a Debtor