The trustee could decide that the transaction was fraudulent (if there was a transfer of assets "that occurred during the two years before your filing on the official bankruptcy" 11 US Code 548(a)(1) ) and reverse the transaction.

"Free markets" function when there are few bounds on legitimate, efficient transactions but not when fraudulent and abusive practices are allowed; I'd just like to know where wholesaling falls.

Performing actions that are not a net positive are a gamble or gift.

Is the issue a technicality, or a completely fraudulent deed?

I like to gamble and like big profits, so I spend most of my time going after hoarder houses and abandoned properties.

This could be because the insurance company has conducted its own investigation and believes that the damages are not as extensive as the policy holder claims, or because the policy holder has submitted exaggerated or fraudulent claims.The insurance company may be facing financial difficulties and may be looking to reduce payouts in order to save money.It's important to note that insurance companies are required to act in good faith when handling claims, which means that they must treat policy holders fairly and not unreasonably deny or delay payment of valid claims.

Don't get me wrong; there are plenty of issues/problems/quirks that old houses have that new houses don't, and an old house can obviously have hidden problems and big repair/maintenance bills too--which is why thorough due diligence is fundamental to REI...but, the point is: a brand new house is not a foolproof solution to repairs/maintenance headaches (and in some cases, a brand new house can be a much bigger gamble than an older house).This is a particularly important lesson for inexperienced investors, who tend to be the most prone to "shiny object syndrome" (the tendency to let nice aesthetics distract from real, underlying issues).

I had a similar spending problem but it was going out to bars, gambling, and clothes.One day I woke up and was like hey, where do I want to be financially in “x” time frame.

Our biggest challenges are 1) tenant friendly (impossible to increase rents to keep pace with market) 2) High price per door 3) Poor rent to price ratio  If your approach is to gamble on appreciation, Metro Vancouver may be a fit, but I've found better overall returns elsewhere.

If he field a lien, it would be a fraudulent lien, and he already knows that.