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LSDefine

Simple English definitions for legal terms

badge of fraud

Read a random definition: mortgage commitment

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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JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
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