The Statute of Limitations For Bankruptcy Fraud In Transfers

Do not confuse the "statute of frauds" with the fraudulent transfer rule. The former is a requirement that real estate transfers be reduced to writing and filed with the clerk to be effective against innocent third parties. The later is a prohibition against transferring assets with the intent to defraud creditors. The statute of limitations that applies to suspicious transfers, under the federal rule, is one year. However, state laws vary greatly and also apply, so that criminal liability for fraudulent transfers may create nondischargeable liability, even though the transfer was completed more than one year before filing.