What is fraudulent conveyance?

Fraudulent conveyance is a term used in Georgia asset protection law to refer to the illegal transferring of property ownership in order to protect it from creditors and other claims. In other words, it is a form of hiding assets. This transferring or hiding of assets is against the law, as it is seen as an attempt to evade taxes or other obligations. Under the law, in order to be considered a fraudulent conveyance, certain elements must be present. First, the transfer must be without fair value or consideration. Second, the conveyor must have had reasonable cause to believe that the creditors had a claim against the assets. Third, the conveyor must have intended to either defraud the creditors or at least hinder or delay them in their ability to collect on their claim. Fraudulent conveyance laws are in place to protect creditors from being taken advantage of by a debtor who is trying to dodge their obligations. In Georgia, any transfers of property or assets which are determined to be fraudulent conveyances are usually deemed as void by the courts. Those engaging in these activities may be subject to criminal and civil penalties, such as fines or even jail time.

Related FAQs

What is the importance of asset protection planning for business owners?
How do I find a qualified asset protection attorney?
Are there any asset protection strategies that can protect my assets from creditors?
What are the benefits of asset protection planning?
Are there any tax implications to asset protection planning?
How can offshore asset protection trusts provide tax savings?
What is an irrevocable trust used for?
What are "charging orders" in asset protection law?
Can assets be protected from creditors in a foreign jurisdiction?
What is an LLC and how can it provide asset protection benefits?

What is fraudulent conveyance?

Related FAQs

Related Blog Posts