What is a fraudulent transfer claim?
Claims of fraudulent transfer under the Bankruptcy Code are based on a transfer of money or other property of the debtor made within one year (two years for cases filed after October 17, 2006) prior to the date of the debtor’s bankruptcy filing, regardless of whether the transfer was made voluntarily or involuntarily by the debtor, if (1) the debtor made the transfer with actual intent to defraud creditors, or (2) received less than reasonably equivalent value in exchange for the transfer and was either (a) insolvent (i.e., debts greater than assets or unable to pay debts as they became due in the ordinary course of business) or became insolvent because of the transfer, or (b) engaged in business for which the remaining capital of the debtor left after the transfer was unreasonably small. There are a number of defenses under the Bankruptcy Code to a fraudulent transfer claim that a defendant in a fraudulent transfer case may be able to utilize.
Claims of fraudulent transfer under the Bankruptcy Code are based on a transfer of money or other property of the debtor made within one year (two years for cases filed after October 17, 2006) prior to the date of the debtor’s bankruptcy filing, regardless of whether the transfer was made voluntarily or involuntarily by the debtor, if (1) the debtor made the transfer with actual intent to defraud creditors, or (2) received less than reasonably equivalent value in exchange for the transfer and was either (a) insolvent (i.e., debts greater than assets or unable to pay debts as they became due in the ordinary course of business) or became insolvent because of the transfer, or (b) engaged in business for which the remaining capital of the debtor left after the transfer was unreasonably small. There are a number of defenses under the Bankruptcy Code to a fraudulent transfer claim that a defendant in a fraudulent transfer case may be able to utilize.
Claims of fraudulent transfer under the Bankruptcy Code are based on a transfer of money or other property of the debtor made within two years prior to the date of the debtor’s bankruptcy filing, regardless of whether the transfer was made voluntarily or involuntarily by the debtor, if (1) the debtor made the transfer with actual intent to defraud creditors, or (2) received less than reasonably equivalent value in exchange for the transfer and was either (a) insolvent (i.e., debts greater than assets or unable to pay debts as they became due in the ordinary course of business) or became insolvent because of the transfer, or (b) engaged in business for which the remaining capital of the debtor left after the transfer was unreasonably small. There are a number of defenses under the Bankruptcy Code to a fraudulent transfer claim that a defendant in a fraudulent transfer case may be able to utilize.
