What is a fraudulent transfer?

A fraudulent transfer is a legal term used to describe a situation in which a person tries to hide assets or debts from creditors. In New York, creditors’ rights law is in place to protect those who are owed money from debtors who attempt to avoid their obligations. A fraudulent transfer occurs when a debtor transfers money or assets to a third-party with the intent to defraud creditors. This type of transfer is illegal and can result in civil and criminal penalties for the debtor. Examples of fraudulent transfers include: transferring funds from one account to another, transferring money to an offshore account, and transferring assets to a family member or friend. All of these actions are designed to keep assets away from creditors who have a rightful claim to them. New York creditors’ rights law allows creditors to take legal action against debtors who engage in fraudulent transfers. A creditor can file a lawsuit against a debtor and seek to have any transferred assets returned. Additionally, a creditor can seek compensation for any damages that were caused by a fraudulent transfer. It is important to keep in mind that fraudulent transfers are illegal and can be punished with civil and criminal penalties. It is best to consult with an attorney if you believe you may be a victim of a fraudulent transfer. An attorney can provide you with the legal guidance you need to protect your rights.

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