How bad can this get? [View all]
Just found out that a relative of mine filed for bankruptcy. She owned a business and sold it to another relative for a significantly reduced amount of money. She had a checking account opened up in the name of the family member and used it for funds. I'm not positive if it was for this business that she sold.
I was told that the court wants the bank statements of this checking account. An estimated $16,000 - $17,000 have gone through the account which has been spent. The person whose name is on the bank account refuses to turn over the bank statements.
My relative who filed for bankruptcy said that they might go after the other relative (she is living on social security) or even her for these funds that went through the checking account.
I don't know much about this sort of thing, but just on the face of it, this strikes me as not being legal. It sounded to me like my relative was trying to hide assets from the court. I'm not sure if I fully understand everything.
So, what does this sound like to you? How bad could this get?
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