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Simple English definitions for legal terms

fraudulent transfer

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A quick definition of fraudulent transfer:

Term: Fraudulent Transfer

Definition: Fraudulent transfer is when someone gives away or sells something for less than it is worth to hide it from the people they owe money to. For example, if someone gives their car to a family member to keep it from being taken by the people they owe money to. If this happens, the person who is owed money can try to get the thing back and sell it to pay off the debt.

A more thorough explanation:

Fraudulent transfer or conveyance is a term used in bankruptcy cases. It refers to the transfer of property to another person for less than its actual value. This is done to hide the property from the bankruptcy trustee. For example, if a debtor signs over a car to a relative to keep it out of the bankruptcy estate, it is considered a fraudulent transfer.

When a transfer is deemed fraudulent, the trustee can recover the property and sell it to benefit the creditors. According to United States v. Frykholm, a conveyance is fraudulent when the debtor receives less than a reasonably equivalent value in exchange for the transfer or obligation. Additionally, the debtor must have been insolvent on the date of the transfer or become insolvent as a result of it.

Example 1: John owes a large amount of money to his creditors and is considering filing for bankruptcy. To avoid losing his expensive watch, he gives it to his friend for safekeeping. This is a fraudulent transfer because John transferred the watch for less than its actual value to hide it from the bankruptcy trustee.

Example 2: Sarah is facing financial difficulties and is considering filing for bankruptcy. She decides to sell her car to her sister for $1,000, even though the car is worth $10,000. This is also a fraudulent transfer because Sarah transferred the car for less than its actual value to hide it from the bankruptcy trustee.

These examples illustrate how a debtor may attempt to hide assets from the bankruptcy trustee by transferring them to someone else for less than their actual value. This is considered fraudulent and can result in the recovery and sale of the property to benefit the creditors.

fraudulent misrepresentation | Fraudulent Transfer Act

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Hi! I’m a rising 3L at GULC who transferred and is in big law now. Does anyone have any questions lol
22:53
can you put a good word in for me with adcommns?
@georgiapeach88: Where did you transfer from? And why did you transfer?
Oh, I see from your profile: Maryland. Still, why did you transfer?
[] ararara
23:38
Caught the most epic sunset haha I was so high up my ears still haven’t popped
[] ararara
23:38
@georgiapeach88: I actually remember you from some of the first times I was on this site
Just out of curiosity: Do we think it's fair to say that the percentage of users of those site who continue to use it after their 1L starts, for those users who actually went or go to law school, is <1%?
manifestmoreadmissions
11:44
@georgiapeach88: not sure if you're still there but im also curious bout why you transferred, especially since your application says you were eventually admitted to GULC off the waitlist?
BelligerentMagicalWarthog
13:35
do we think GULC is done
KnowledgeableRitzyWasp
17:45
@BelligerentMagicalWarthog: last year they were accepting people off the waitlist from mid june up to a few days before classes start. so just off that and vibes I don't think they're done
Hi Guys
23:06
gulc said they'll get back to me by the week of june 17th
23:06
i hope they give me the a or r. i just want an answer 😭😭
has anyone on GW waitlist heard anything?
KnowledgeableRitzyWasp
23:55
@menherachan: praying for your WL A
0:13
@menherachan: i hope they give u that A as well
tysm! i hope so too lol
Hello everyone. Is it easy to miss important information about your admissions results if you don’t add your law school admission office to your Gmail contact? Did you find any important email from law school in your junk mail?
finna make yo hard times look pretty 😪
i watch my grandpa say penis
hys students when they see the above the law rankings 😪
@BelligerentMagicalWarthog: anecdote but a friend of mine got off the gulc waitlist in July last year
Write a poem rizzing up the admission staff
@Zenaida-Macroura: I got a waitlist on Saturday
Should I email HLS and ask if WL students get merch. They asked for my address for a surprise gift but I haven’t gotten anything
Zenaida-Macroura
8:58
@dusttodiamonds: OMG???
Zenaida-Macroura
8:58
More things to worry about over the weekend nice....
[] ararara
9:15
@Zenaida-Macroura: there’s no reason to worry ☮️ ❤️ but I/we get it! For me I’m super worried about not having any money coming in for a while plus no sugar mommy/daddy (yet!) to take care of me!
[] ararara
9:16
I always think back to when I was anxious waiting for my lsat results one take. I went to the park and a parent let me play with their kid. I fixed his truck and he was hyped! He told me to “have a good time!” when I left haha. He’s our spirit animal!
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