What is fraudulent conveyance?
Fraudulent conveyance is a type of asset protection law that makes it illegal to transfer or dispose of property to a third party in an effort to avoid and/or defraud creditors or other legal claims. This type of law is especially important for those in Virginia since it is a state that allows creditors to place liens on assets. If a person in Virginia is trying to avoid or delay paying on an outstanding debt for any reason, they may try to hide assets from their creditors with fraudulent conveyance. This could involve transferring property title to another person or entity, such as a family member, trust, or corporation. In some cases, this can be an effective way for a person to protect their assets from creditors. However, fraudulent conveyance is illegal in Virginia. This means if it is suspected that a person has used fraudulent conveyance to avoid paying on their debts, the courts may look into the transfer and potentially undo it. This can result in a lien against the asset being placed, or the asset being sold in an effort to satisfy the debt. For this reason, it is important for those in Virginia to understand all applicable state and federal laws concerning asset protection and fraudulent conveyance when making any decision about their finances. Although it may be tempting to use fraudulent conveyance to protect assets from creditors, it is important to remember that it is illegal in Virginia and can result in significant penalties.
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