fraudulent transfer statutes

Fraudulent transfer statutes are laws that prevent individuals or entities from intentionally shifting assets or money to avoid paying creditors when facing financial obligations. These laws enable creditors to challenge transfers made with fraudulent intent or those that unfairly hinder creditors’ ability to collect what they’re owed. Essentially, if someone tries to hide or move assets right before declaring bankruptcy or settling debts, these statutes allow the courts to reverse or undo those transfers, ensuring fair treatment of creditors and preventing abuse of the legal system.