What is a fraudulent transfer?

A fraudulent transfer is a term used in Tennessee creditors rights law to describe a transaction that is made with the intent to avoid or delay a creditor from collecting a debt. In some cases, a fraudulent transfer can include a debtor giving away or selling assets without receiving sufficient value in return. It may also include transferring money from one account to another or transferring assets to a relative or friend in order to protect them from creditors. A fraudulent transfer is illegal and can have serious consequences for the debtor. In order to prove that a fraudulent transfer has occurred, the creditor must be able to prove that the transaction was done with the intent to avoid or delay the creditor from collecting a debt. The creditor must also prove that the debtor received less than reasonable value for the assets that were transferred. Finally, the debtor must also prove that there was an existing debt or legal obligation at the time of the transfer. If a fraudulent transfer is proven in court, the court can order the debtor to return the assets or money to the creditor and can also impose a fine or penalty. Furthermore, the court can hold the person who received the assets or money, or the party who assisted with the transaction, liable for the debt.

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What is a fraudulent transfer?

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