What is the difference between fraudulent transfer and fraudulent conveyance?

Fraudulent transfer and fraudulent conveyance are two concepts related to asset protection law in Tennessee. Generally speaking, both involve a debtor’s attempt to make it more difficult for creditors to collect on a debt. Fraudulent transfer is the more complicated of the two concepts as it involves transferring property from a debtor to another party for no or insufficient consideration, with the intent to defraud creditors. To be considered fraudulent, the debtor must have had actual knowledge of the potential creditors at the time of the transfer. If proven, the transfer can be reversed and the property can be returned to the debtor. Fraudulent conveyance is simpler in nature. It involves the transfer of property with the intent to hinder or delay creditors from legally recovering a debt. For a fraudulent conveyance to be successful, there must be a transfer of an asset or property with the intent to hinder or delay creditors. There is no requirement for a debtor to have recognition of potential creditors when the property is transferred. This type of fraudulent transfer can also be reversed if proven in court. In both cases, it is up to the creditor to prove that a transfer was fraudulent and the court is likely to scrutinize the debtor’s financial records in making a decision. Both fraudulent transfer and fraudulent conveyance are serious violations that can carry penalties including fines and even jail time.

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What is the difference between fraudulent transfer and fraudulent conveyance?

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