Bankruptcy

What happens to my revocable living trust if I file for bankruptcy?

A revocable living trust offers no protection in bankruptcy because you retain complete control over the assets. All trust assets become part of your bankruptcy estate and can be used to pay creditors. However, some assets may qualify for state or federal exemptions regardless of whether they're in a trust. The timing of when you transferred assets into the trust also matters, as recent transfers may be scrutinized as potential fraudulent conveyances.