Fraudulent Conveyance Statute

A Fraudulent Conveyance Statute is a legal rule designed to prevent individuals or businesses from transferring assets to avoid paying debts, such as during bankruptcy or creditor claims. When someone sells or gifts property with the intention of defrauding creditors, a court may reverse the transaction, allowing creditors to reclaim what is owed. The goal of this statute is to ensure fairness in financial dealings and protect the rights of creditors, ensuring that debtors cannot escape their obligations by hiding or moving their assets.