What is a fraudulent conveyance?

A fraudulent conveyance is a type of financial transaction that is used to transfer ownership of property or assets with the aim of deceiving or defrauding creditors. It involves transferring property or funds to a third party in order to keep them out of the reach of creditors. In California, fraudulent conveyance is illegal and can result in severe legal penalties, including civil and criminal charges. Under California law, a fraudulent conveyance is defined as one made with the intent of hindering, delaying, or defrauding creditors. This includes any act or transaction where the debtor transfers, conceals, or disposes of their assets with the intention of avoiding the claims of creditors. In other words, the debtor cannot transfer assets in order to make it more difficult for creditors to collect what is owed. The California Uniform Fraudulent Transfer Act (CUFTA) outlines the legal remedies available to creditors when a fraudulent transfer has occurred. These include the right to recover the transferred property, repayment of the debt owed, or legal damages if the property or money cannot be recovered. Creditors in California should be aware of the potential for fraudulent transfer of assets and the legal remedies available if it occurs. If a debtor is found to have made a fraudulent transfer of assets or funds, creditors will have legal recourse to pursue the money or property for repayment.

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What is a fraudulent conveyance?

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