- fraudulent conveyance
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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)also:{{}}fraudulent transferA 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
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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.