Fraudulent Conveyance


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Fraudulent Conveyance

The transfer of property to another party in order to defraud a creditor. For example, if a person owes the bank for a loan for $15,000, the person may give or sell $15,000 worth of property to a relative, often while still maintaining use of the property, in order to prevent the bank from being repaid. Legally, fraudulent conveyance requires the intention to defraud a creditor.
References in periodicals archive ?
At least the garnishee knows that if the garnishee bought the thing from the debtor in good faith for value, the garnishee received the thing free and clear of a fraudulent conveyance right.
See generally Baird & Jackson, supra note 38 (arguing that the "inability of parties to opt out" of fraudulent conveyance law should limit its reach); Anthony Michael Sabino, Applying the Law of Fraudulent Conveyances to Bankrupt Leveraged Buyouts: The Bankruptcy Code's Increasing Leverage over Failed LBOs, 69 N.
5th DCA 2003), the Fifth District Court of Appeal reviewed an asset protection plan where Bankfirst sued a debtor's lawyers and financial advisers for damages on the theory of common law civil conspiracy to make a fraudulent conveyance.
For a judge, the choice between characterizing the strategic conveyance as acceptable economic and legal behavior on the one hand, and fraudulent conveyance on the other, may reflect the judge's fundamental assessment of the strategy's morality.
United States Fraudulent Conveyance Law--A Threat to the Success of Alaska and Delaware Self-Settled Spendthrift Trusts
The fraudulent conveyance stipulation is shown by a preponderance of evidence standard, rather than by the beyond a reasonable doubt standard that is generally required offshore.
In deciding this case, Federal District Judge Holderman rejected the assertion of the defendants that the law of fraudulent conveyance does not apply to leveraged buyouts.
Kaufman and Owsley discuss the restructuring of companies that are in financial distress, in terms of key players and advisors, strategies, equity and enterprise valuation, debt capacity, fraudulent conveyance, maintaining the status quo, third party options, and internal plans of reorganization.
The law firm Hahn & Hessen LLP announced that it has won a contentious fraudulent conveyance action on behalf of its client Insilco Corp.