Is A Transfer Fraudulent

Fraudulent transfers

Some transfers may be considered fraudulent. If the trustee suspects that the debtor (you) attempted to conceal assets from creditors, or to delay the proceeding by transferring property to another, the trustee may pursue a fraudulent conveyance action. If the debtor transfers property between 90 days to two years of filing in an effort to conceal the asset, it may be considered fraudulent. This also pertains to employment contracts, even if the company was solvent at the time of the contract. A fraudulent conveyance is also one in which a creditor obtains an asset from the debtor without fair consideration. For example:

A debtor collected coins for many years and had a very valuable collection. He did not want to give the collection to the trustee, who would sell it and disburse the money among creditors, so he sold it to his brother-in-law for $25 saying, “I’ll give you the $25 back when the bankruptcy is over and you can give me my coin collection back.” Since the collection was worth $2,500, $25 was not fair consideration. The sale would be considered fraudulent and subject to avoidance.

If assets were transferred to a self-settled trust, or similar device, within 10 years of filing and the trustee determines that the assets were transferred to deceive creditors, the trustee may void that transaction. However, the trustee must establish that the assets were transferred to avoid paying a claim rather than to protect assets in general.

Uniform Fraudulent Transfer Act

Questions of whether particular transfers are or are not fraudulent transfers represent some of the most important questions in asset protection planning. One section of the Uniform Fraudulent Transfer Act provides that a creditor may effectively set aside a conveyance against anyone, except for a good faith purchaser or a party claiming under such a purchaser.

    "He went far above & beyond what was expected!"

    - Nita F.

    "I had an excellent experience working with Thad Murphy and his amazing staff."

    - Rhonda B.

    "Great answers to questions and quick to get ahold of."

    - R.G.

    "Great service and fair prices."

    - Julia T.

Meet Your Legal Minds

Experienced Advocates Ready to Handle Your Case

Why Choose Our Firm?

The Next Step to a Brighter Future
  • Free Initial Case Evaluation
  • Local Iowa Attorneys - We Understand YOU
  • Over 60 Years Of Combined Experienced
  • We Advocate For Our Clients

Contact Pioneer Law Office Today!

Put Your Case In Trusted Hands
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.
  • By submitting, you agree to be contacted about your request & other information using automated technology. Message frequency varies. Msg & data rates may apply. Text STOP to cancel. Acceptable Use Policy