Fraudulent Transfers

Defending an adversary proceeding to recover a fraudulent transfer.

The Chapter 7 Trustee can recover property or it’s value transferred to you by a Debtor within two years of the Debtor filing bankruptcy to the extent that you did not pay the Debtor the full value of the property that you received.

The rationale is that the transfer reduced the amount of property that the Debtor would have had available to pay at least a portion of his debt to creditors who file claims in his bankruptcy case. You can defeat the Trustee’s claim by showing that the transfer was for the payment of a debt owed to you or was property that you paid to another for the benefit of the Debtor, or that it was simply a transfer of title to property that you in fact already owned.

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