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Payback Time: Fraudulent Conveyances.
The trustee can avoid transfers of a bankrupt
debtor's property interests made or incurred up to one year before the petition
for bankruptcy, where the "actual intent" of the transfer is to
"hinder, delay, or defraud" any creditor. 11 USC 548.
Worse, a "fraudulent transfer" may also
occur where the debtor received "less than a reasonably equivalent value in
exchange for such transfer" and the debtor was either insolvent or
operating with "an unreasonably small capital" or the debtor intended
(or anticipated) to incur debts beyond his ability to repay. 11 USC 548(a)(2).
Related topics:
Bankruptcy in Outsourcing
Payback Time: Avoidable Preferences
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