What is a constructive fraudulent transfer?
A constructive fraudulent transfer is a type of fraudulent transfer that occurs when a debtor fails to perform a duty that the law requires them to perform. This kind of fraudulent transfer often occurs when a debtor transfers money or property to another party for little or no consideration, with the intention of preventing creditors from collecting what they are owed. In Florida, creditors’ rights law provides that when a debtor makes a transfer of property or money without receiving fair value for it, the transfer is considered a constructive fraudulent transfer. This is true regardless of whether the debtor intended to deceive creditors or not; if the transfer occurred without adequate consideration and the transferor was insolvent when the transfer was made, it is likely to be considered a constructive fraudulent transfer. If this kind of transfer is found to be fraudulent, the creditor may be able to recover the money or property from the debtor or the transferee.
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