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.
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He regularly litigates and counsels on breach of contract claims; employment discrimination claims; non-compete litigation; wage and hour claims; Family Medical Leave Act claims; ERISA benefit denial of disability claims; enforcement/execution of domestic and foreign judgments; recovery of funds, assets, and property; commercial landlord/tenant matters; unfair and/or deceptive trade practices; and fraudulent conveyances. Prior to beginning his legal career, Bob served more than eight years on active duty in the United States Army.
The Court considered and rejected the debtor's argument that reading "actual fraud" to cover fraudulent conveyances would duplicate the exceptions to discharge in [section][section] 523(a)(4) and 523(a)(6), which respectively exempt debts "for fraud or defalcation while acting in a fiduciary capacity" (38) and debts "for willful and malicious injury by the debtor." (39) The Court reasoned that "overlap [among the three provisions] appears inevitable," but in any event, Ritz's interpretation would not eliminate overlap.
On July 28, 2017, Carrion who held an unpaid $500,000 pregnancy-discrimination judgment against D&H intervened, asserting claims for fraudulent conveyances from D&H to D'Angelo and his new firm.
One contentious issue is the effect of a restraining notice when the debtor is alleged to have made fraudulent conveyances. Suppose a judgment debtor has fraudulently conveyed property to a garnishee.
(59) We do not here discuss lender liability and deepening insolvency, which are actions that bear a family resemblance to fraudulent conveyances. Our proposed contract-based third-party remedy, described below in connection with these doctrines, would permit parties to fashion their own versions of such actions.
Trustees, receivers, and others who are appointed to do "cleanup" after these schemes collapse regularly use traditional state laws relating to fraudulent conveyances to recover "false profits" (1) and other proceeds of Ponzi schemers' largesse in order to gather monies to help remediate the damage caused by these schemes.
While grappling with the Supreme Court's precedent in this area, some lower courts have commented that while the Supreme Court intended Stern to be read narrowly, it is still plausible that someday the Supreme Court may expand Stern to reach fraudulent conveyances. (301) Therefore, these bankruptcy judges currently refuse to extend Stern to fraudulent conveyances.
In addition to her transactional work, she represents clients in all aspects of contested matters and adversary proceedings, including claims litigation, fraudulent conveyances and any type of bankruptcy litigation.
Specifically, Lehman is asking Peck to reverse his dismissal of its claims to void certain guarantees made to JP Morgan as 'constructive fraudulent conveyances.'
Adversary proceedings against insiders to regain preferences and fraudulent conveyances are often advisable in those Chapter 11 cases where it appears that a debtor has improperly transferred assets to its insiders.
After a brief tour of the civil litigation system, the book offers an overview of asset protection planning, then covers fraudulent conveyances, planning for exempt assets, asset protection for spouses, and asset protection using corporations, domestic trusts, limited partnerships and LLCs, and foreign asset protection trusts.