Alex files a petition for bankruptcy under Chapter 7. He owes $2.37 million to assorted creditors. Two months before filing, he sold his beach house, which was valued at $600,000, to his brother Jonah for $150,000. If the trustee objects to the sale, most likely:

If the trustee objects to the sale, most likely: The trustee will avoid the transfer and take back the house as part of Alex's estate

Explanation:

C) the trustee will avoid the transfer and take back the house as part of Alex's estate.

Explanation:

Alex's creditors can claim that the sale was made to avoid payment to them since its value is much lower than the fair market value. It all depends if the property was considered an exempt property or not. Generally a beach house will not be considered exempt since it's not Alex's primary residence. So the trustee can cancel the transfer and include the beach house in Alex's estate.

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