What is fraudulent conveyance?

Fraudulent conveyance is a term used in asset protection law to describe the illegal transfer of assets in order to prevent creditors from claiming them. In Arizona, fraudulent conveyance is a crime punishable by a fine and/or imprisonment. When someone is facing financial trouble, they may attempt to move assets to a friend or family member in order to keep them out of the hands of creditors. In some cases, they may also move the assets to a new entity, such as a trust or a business. These actions can be considered forms of fraudulent conveyance. A fraudulent conveyance is any act that prevents a creditor from collecting the money they are owed. Examples of fraudulent conveyance include transferring assets to avoid paying outstanding debts, or selling assets for significantly less than their actual value. In some cases, even gifting or donating assets can be considered fraudulent conveyance. In Arizona, a creditor can file a fraudulent conveyance lawsuit against someone who has illegally transferred assets in order to prevent them from collecting what they are owed. If the court rules in favor of the creditor, the person responsible for the fraudulent conveyance may be held responsible for repaying the debt, as well as any court or attorney fees.

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What is fraudulent conveyance?

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