Fraudulent Transfer Law

Fraudulent Transfer Law refers to legal rules aimed at preventing individuals or businesses from transferring their assets to avoid paying debts or defrauding creditors. If someone owes money and intentionally gives away or sells valuable property for less than it's worth, this can be challenged in court. The law seeks to ensure fair treatment of creditors, allowing them to recover what they are owed. Courts can reverse such transfers, allowing creditors to claim the assets as part of debt settlement, thereby maintaining the integrity of financial transactions and preventing abuse.