What is the meaning of “fraudulent transfer”?

In Tennessee, a "fraudulent transfer" is a term used in Creditors Rights Law to describe any type of transfer of property or money, which is done with intent to defraud a creditor. Fraudulent transfers are usually intended to put assets out of reach of a creditor, to transfer assets to a person or entity the debtor knows is not likely to pay the debt, or to hide or disguise the existence, nature, or source of property or money. Fraudulent transfers are illegal in Tennessee, and creditors may take legal action to set aside fraudulent transfers. This means that the transfer can be “undone” and the asset or money returned to the debtor’s possession. These types of transfers can be done directly, or indirectly, such as through an intermediary. When assessing if a transfer is fraudulent, courts in Tennessee will analyze the intent of the debtor at the time of the transfer. They will look at whether the debtor was insolvent, or whether the transfer put the debtor into insolvency. They will also look at whether the debtor received less than fair value for the transfer, or whether the debtor was trying to defraud or hinder creditors. Ultimately, a fraudulent transfer is any transfer made by a debtor with the intent to defraud creditors. It is illegal in Tennessee, and creditors can take legal action to set aside the transfer and reclaim their assets.

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What is the meaning of “fraudulent transfer”?

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