Constructive Fraudulent Conveyance

Constructive fraudulent conveyance occurs when a person transfers assets to avoid paying debts, even if there’s no intent to defraud creditors. This happens when the transfer leaves the person unable to meet their financial obligations or doesn’t receive fair value in return for the assets. Courts may deem these transactions unfair if they impair creditors' ability to collect what they're owed, even if the transfer appears legitimate at first glance. Essentially, it's about protecting creditors from being cheated out of what they're rightfully owed.