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LSDefine

Simple English definitions for legal terms

fraudulent transfer

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A quick definition of fraudulent transfer:

Term: Fraudulent Transfer

Definition: Fraudulent transfer is when someone gives away or sells something for less than it is worth to hide it from the people they owe money to. For example, if someone gives their car to a family member to keep it from being taken by the people they owe money to. If this happens, the person who is owed money can try to get the thing back and sell it to pay off the debt.

A more thorough explanation:

Fraudulent transfer or conveyance is a term used in bankruptcy cases. It refers to the transfer of property to another person for less than its actual value. This is done to hide the property from the bankruptcy trustee. For example, if a debtor signs over a car to a relative to keep it out of the bankruptcy estate, it is considered a fraudulent transfer.

When a transfer is deemed fraudulent, the trustee can recover the property and sell it to benefit the creditors. According to United States v. Frykholm, a conveyance is fraudulent when the debtor receives less than a reasonably equivalent value in exchange for the transfer or obligation. Additionally, the debtor must have been insolvent on the date of the transfer or become insolvent as a result of it.

Example 1: John owes a large amount of money to his creditors and is considering filing for bankruptcy. To avoid losing his expensive watch, he gives it to his friend for safekeeping. This is a fraudulent transfer because John transferred the watch for less than its actual value to hide it from the bankruptcy trustee.

Example 2: Sarah is facing financial difficulties and is considering filing for bankruptcy. She decides to sell her car to her sister for $1,000, even though the car is worth $10,000. This is also a fraudulent transfer because Sarah transferred the car for less than its actual value to hide it from the bankruptcy trustee.

These examples illustrate how a debtor may attempt to hide assets from the bankruptcy trustee by transferring them to someone else for less than their actual value. This is considered fraudulent and can result in the recovery and sale of the property to benefit the creditors.

fraudulent misrepresentation | Fraudulent Transfer Act

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22:54
We were having a conversation about the role of birth control that was politically charged, you brought your own experience into it, I pointed out a possible flaw in the argument, I'm sorry you tried to use a personal example and then when I pointed out something that could be a flaw you took it personally. I even phrased it, "I wouldn't be so sure.." but nah, you know 100% the truth. Everyone should always trust everyones lived experience 100% of the time even if it contradicts other peoples so whatever.
[] baddestbunny
22:57
I can’t tell if you’re a deeply mean-spirited person or just autistic. I think it’s probably the latter but what you said was hurtful to me and I don’t want to engage further
22:57
what the heck.
[] baddestbunny
22:58
Sorry this guy implied that my recent and painful breakup was somehow justified because I take birth control and it pissed me off
[] baddestbunny
22:59
Let’s go back to talking about law school on here
22:59
got another A. have to wait 2-4 weeks to hear on scholarships. booooo.
23:01
nah that's whack, sorry bunny
23:01
I never said it was justified. I just said I wouldn't rule out the possibility that it contributed cus you said you started taking it and then after that he broke up with you. I have no idea what was sufficent to have him break up with you. I just don't know. All I know is, I can't rule that out and it's not a good example for what we were talking about.
23:01
@Invicat: this is the most "first world problems" thing ever but having two early A's and knowing $$ info doesn't come until like Feb at least is so stressfuk
23:02
stressful** but the typo works hahahaa
23:02
it really is
23:02
but hey, congrats!! you're going to mf law school
23:02
woo!
23:04
@AhsokaTano: I said that the other day about UCLA. I was like, man cool to know but shitty there is no money yet.
23:19
yup it's brutal
23:20
makes it hard to talk to people outside of LSD/reddit bc even friends my age won't understand why an acceptance ≠ certainty, let alone my family lol
23:21
i don't wanna tell anyone besides my parent and my partner about my A's anymore in case i get no $$ and can't go somewhere... don't wanna have to explain why i "turned down" a great school.
23:22
Ahh my family and friends are like, finally gunna use that G.I. bill you saved through undergrad after NOT getting into law school last year? It's brutal. I have like 20 people in my life that are just like, just get into law school already. You are 27. Everyone else you know has already graduated law school.
23:23
Your situation though, completely different. I think you got a worse situation still.
23:25
oh i mean GI Bill is like the least we can do for vets. and i don't regret working first — i'll be 5 years in the workforce by the time i resign to enroll next year — but like you said it totally changes the calculus on how to handle admissions news
23:25
and again im at least self aware enough to know this is the tiniest violin of a problem, but i figure maybe LSD people understand hahaha
23:26
Yeah, I think most people do. A lot of LSAT Demon people here and the Demon teaches you to never pay for law school.
23:27
i'm hard set on PI (work experience having confirmed my career goals), so I'm okay with some debt if i go to a school with LRAP. but i still gotta pay rent and buy groceries and all that jazz so it's gotta be workable.
23:28
i know everyone says not to work during law school but i did 20h/week as an undergrad so idk it'd be weird not to have a part-time gig
23:28
I think it would be really nice for me to get a 15k-20k a year extra scholarship. That would kinda seal the deal on whatever school I got into.
23:29
@AhsokaTano: I've seen a couple people do it. I had a lawyer who I used to work for from BU who said I could work during law school if I wanted. She said 1L aint that tough if you have been organized your whole life.
23:29
She did like 32 hours a week but she was a very interesting attorney. Couldn't figure out how to connect the computer to the printer and she was like 32.
23:33
Yeah, now that I think about her again. It was weird. Her husband like coded apps for fun but then like she couldnt use the printer and she was like 5'0" and he was like 6'4" and they were totally opposites of eachother but somehow they were perfect for eachother. It was so weird. She was awesome though. Probably top 3 attorneys I have worked for.
23:35
ahahahahah what that is so hard to imagine
23:38
Yeah, good times. Sad they are over.
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