fraudulent transfer statute

A fraudulent transfer statute is a legal rule designed to prevent individuals or businesses from transferring assets to avoid paying debts. When someone owes money and they move their assets—like cash or property—out of reach of creditors, this can be deemed fraudulent. The law allows creditors to challenge such transfers, aiming to protect their ability to collect what is owed. Essentially, it ensures fairness in financial dealings by preventing debtors from hiding or dissipating their resources to escape liability.