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 ?
It stated that "any debts 'traceable to' the fraudulent conveyance ...
In any event, in a fraudulent conveyance case, a creditor is not always in a position to designate a specific thing as having been the subject of a fraudulent conveyance.
Under the settlement agreement, the defendants will pay $5.15 billion to the Trust to settle the fraudulent conveyance case.
[i]f there is no limit on when a creditor can sue to set aside a transfer, fraudulent conveyance law becomes an insurance policy for creditors of companies that have gone private.
If a postjudgment suit to recover assets that had earlier been fraudulently conveyed might prove futile--if the assets might by then have been concealed, or been dissipated, or have otherwise been placed beyond the reach of the judgment creditor--the potential judgment creditor faces a probabilistic harm that may entitle him to injunctive relief; 'the conveyance of his property by a tort-defendant, made with intent to defraud the tort-plaintiff, is subject to invalidation as a fraudulent conveyance, even though the liability to the prospective tort-creditor has not matured into a judgment at the time of the transfer.' United States v.
Legal rules that provide incentives and remedies include, in addition to those mentioned above, rules on fraudulent conveyance law and lender liability as well as legal capital rules and fiduciary duties to creditors.
Nordberg, the Supreme Court decided that, while Congress had decided fraudulent conveyance actions to be "core" proceedings, the Seventh Amendment still applied to such claims.
"We're not concerned about fraudulent conveyance in regards to the sale of our IP portfolio."
The lawsuit relies upon a finding by a bankruptcy court special examiner last summer that Tribune's leveraged buyout was essentially a "fraudulent conveyance," meaning that principals knew it was destined to fail.
From the outside, this exercise in institutional self-perpetuation looks like a fraudulent conveyance, a swindie to protect $1 billion in assets from the state government.
(Admitted to practice: 1993) McKillop conspired with another individual in the fraudulent conveyance of real estate.
Jurisdictions considered most favorable as a situs for APTs do not recognize foreign judgments (thereby forcing a retrial of claims), have weakened or no fraudulent conveyance laws, and permit a trust settlor to retain trust powers and benefits without subjecting the trust to the claims of creditors.