fraudulent conveyance
fraudulent conveyance
the transfer of valuable assets from a company which i) occurs when the company is technically insolvent, ii) renders the company insolvent, or iii) is made for less than adequate consideration. The spate of leveraged buyouts and other highly leveraged transactions in the 1980s has spurred a number of fraudulent conveyance allegations in recent years (Glossary of Common Bankruptcy Terms)

A fraudulent transfer is a transfer of an asset for less than fair value. Fraudulent, in this situation, does not mean that a criminal fraud has occurred. It means only that the transfer has placed the asset out of the reach of the trustee or creditors. This transfer may be avoided (reversed) by the bankruptcy court.
If a debtor, prior to filing bankruptcy, were to sell a $100,000 piece of real estate to a friend for $10, the transfer would probably be a fraudulent transfer. (Bernstein's Dictionary of Bankruptcy Terminology)

United Glossary of Bankruptcy Terms 2012.

fraudulent conveyance
A fraudulent transfer is a transfer of an asset for less than fair value. Fraudulent, in this situation, does not mean that a criminal fraud has occurred. It means only that the transfer has placed the asset out of the reach of the trustee or creditors. This transfer may be avoided (reversed) by the bankruptcy court. If a debtor, prior to filing bankruptcy, were to sell a $100,000 piece of real estate to a friend for $10, the transfer would probably be a fraudulent transfer.

US Bankruptcy 2012.


Glossary of Bankruptcy.

Look at other dictionaries:

  • fraudulent conveyance — n: a conveyance of property made for the purpose of rendering the property unavailable for satisfaction of a debt or otherwise hindering or defeating the rights of creditors; specif: a conveyance of property that is made in return for inadequate… …   Law dictionary

  • fraudulent conveyance — fraudulent conveyance/fraudulent transfer A transfer of an interest of the debtor made within one year prior to the filing of bankruptcy that is either made by the debtor with the intent to defraud its creditors or for which the debtor receives… …   Financial and business terms

  • Fraudulent conveyance — A fraudulent conveyance, also fraudulent transfer is a civil cause of action. It arises in debtor/creditor relations, particularly with reference to insolvent debtors. The cause of action is typically brought by creditors or by bankruptcy… …   Wikipedia

  • Fraudulent Conveyance — The illegal transfer of property to another party in order to defer, hinder or defraud creditors, or to put such property out of the reach of a creditor. Fraudulent conveyance, for instance, would occur if an individual sold all of his… …   Investment dictionary

  • fraudulent conveyance — A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach. Dean v. Davis, 242 U.S. 438, 37 S.Ct. 130, 61 L.Ed. 419. Conveyance made with intent to avoid… …   Black's law dictionary

  • fraudulent conveyance — A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach. Dean v. Davis, 242 U.S. 438, 37 S.Ct. 130, 61 L.Ed. 419. Conveyance made with intent to avoid… …   Black's law dictionary

  • fraudulent conveyance — A conveyance in fraud of creditors. A transaction by means of which the owner of real or personal property has sought to place the land or goods beyond the reach of his creditors, or which operates to the prejudice of their legal or equitable… …   Ballentine's law dictionary

  • fraudulent conveyance — The transfer of property to another person with the aim of putting it beyond the reach of creditors. For example, if a man transfers his house into the name of his wife because he realizes that his business is about to become insolvent, the… …   Accounting dictionary

  • fraudulent conveyance — The transfer of property to another person with the aim of putting it beyond the reach of creditors. For example, if a man transfers his house into the name of his wife because he realizes that his business is about to become insolvent, the… …   Big dictionary of business and management

  • Fraudulent Conveyance Act — One of the uniform laws. 37 Am J2d Frd Conv § 3 …   Ballentine's law dictionary

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