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Old 01-29-2011, 12:17 PM   #8
banyon banyon is offline
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Join Date: Aug 2005
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Most bankruptcy codes have a "look back period" that would hold this as a sham transaction and an attempt to evade creditors.

According to the Federal Code,


§ 548. Fraudulent transfers and obligations

(a)
(1) The trustee may avoid any transfer (including any transfer to or for the benefit of an insider under an employment contract) of an interest of the debtor in property, or any obligation (including any obligation to or for the benefit of an insider under an employment contract) incurred by the debtor, that was made or incurred on or within 2 years before the date of the filing of the petition, if the debtor voluntarily or involuntarily—
(A) made such transfer or incurred such obligation with actual intent to hinder, delay, or defraud any entity to which the debtor was or became, on or after the date that such transfer was made or such obligation was incurred, indebted; or
(B)
(i) received less than a reasonably equivalent value in exchange for such transfer or obligation; and

It can also invalidate your whole bankruptcy:

http://www.law.cornell.edu/uscode/ht...7----000-.html

TITLE 11 > CHAPTER 7 > SUBCHAPTER II > § 727
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§ 727. Discharge
How Current is This?
(a) The court shall grant the debtor a discharge, unless—
(1) the debtor is not an individual;
(2) the debtor, with intent to hinder, delay, or defraud a creditor or an officer of the estate charged with custody of property under this title, has transferred, removed, destroyed, mutilated, or concealed, or has permitted to be transferred, removed, destroyed, mutilated, or concealed—
(A) property of the debtor, within one year before the date of the filing of the petition; or
(B) property of the estate, after the date of the filing of the petition;
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