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LSDefine

Simple English definitions for legal terms

badge of fraud

Read a random definition: zygote

A quick definition of badge of fraud:

A badge of fraud is something that shows someone was trying to cheat or trick another person in a deal. This could be things like hiding important information, doing something sneaky, or lying. It's like a red flag that tells a court that something fishy was going on. Fraud is when someone lies or hides important information to make someone else do something that hurts them. It's not a nice thing to do and can even be a crime.

A more thorough explanation:

Definition: A circumstance that indicates a party to a transaction intended to hinder or defraud the other party. Examples include a transfer made in anticipation of litigation, a transaction outside the usual course of business, or a false statement.

Explanation: A badge of fraud is a red flag that suggests someone is trying to cheat or deceive another person. For example, if someone sells their car to a friend for $1 right before they get sued, that could be a badge of fraud because it looks like they're trying to hide their assets from the person who is suing them. Similarly, if a company suddenly sells all of its inventory to a shell company for a fraction of its value, that could be a badge of fraud because it looks like they're trying to move assets out of reach of their creditors.

Examples:

  • Transferring property to a family member for no consideration right before filing for bankruptcy.
  • Selling a valuable asset for far less than its market value to a friend or family member.
  • Making false statements on a loan application to obtain a loan.

These examples illustrate how a badge of fraud can be used to hide assets or deceive creditors. In each case, the person or company is trying to avoid paying their debts or facing the consequences of their actions.

bad-faith filing | badge of slavery

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General

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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