What is a Fraudulent Transfer Under Bankruptcy Law?
The United States bankruptcy code is aimed at protecting consumers from having to pay debt which they honestly incurred but which they will not be able to pay back. Bankruptcy law seeks to help honest debtors and to provide them a way to start over. Bankruptcy law also aims to prevent debtors from avoiding paying their creditors when there are assets that can be used to do so. Consequently, Congress passed a law prohibiting “fraudulent transfers.” There are a number of transactions that constitutes “fraudulent transfers” including:
- Transfers of property made within two (2) years of the filing of the bankruptcy petition which were done so with the intent to delay, hinder, or defraud any entity to which the debtor was or became indebted;
- Transfers of property made within two (2) years for an amount less than the market value of the property and the debtor was insolvent at the time of the transaction, the debtor was engaged in a business but the business interest was not sufficient capital for the property exchanged, intended to go into substantial debt, or transferred the property to an insider.
- Transfers of property made by the debtor within ten (10) years to a self-settled trust in which the debtor is a beneficiary of the trust made with the intent to defraud creditors.
Talk to a Bankruptcy Attorney at SLF
If you are considering bankruptcy you best speak to a qualified bankruptcy attorney like those at Salcido Law Firm PLLC, a debt relief agency under the U.S. Bankruptcy Code. Our lawyers will help you understand of any transfers you’ve made over the last few years will be set aside by the U.S. Trustee as a fraudulent transfer. We will also help you understand whether you qualify for bankruptcy and whether bankruptcy is indeed your best option for eliminating your debt. Call us anytime to schedule a time to meet with one of our Utah bankruptcy lawyers. 801.413.17.53. You can also email us.