Fraudulent conveyance is an action taken with the intention of placing an individual\u2019s or company\u2019s assets outside the reach of creditors or the government. This legal tactic can be used by individuals and corporations to avoid repaying debt or other obligations.<\/p>\n
Fraudulent conveyance takes many forms. It can range from something as simple as transferring ownership of debts to another party in order to avoid fulfilling the obligation, to more complex schemes such as transferring assets to another entity in order to avoid creditors or tax debt. The act of fraudulent conveyance itself is not illegal, but it can be used in a manner that is illegal and can lead to criminal charges.<\/p>\n
An example of fraudulent conveyance occurred in 2020 when a husband and wife filed for bankruptcy but were found to have transferred ownership of a property to the husband\u2019s father prior to filing. This was done in order to keep the home out of the court\u2019s reach. Another example of fraud occurred when a corporation transferred ownership of its fleet of vehicles to another company in order to avoid taxes that were due to the IRS.<\/p>\n
The penalties for fraudulent conveyance vary, but can range from criminal charges to hefty fines and jail time. Civil cases are often more common, as they are easier to investigate and prove. In civil cases, a court can order the repayment of all assets to the original owner, as well as interest and attorneys\u2019 fees. Fraudulent conveyance often results in an individual or business becoming insolvent, so it is important to understand the legal consequences before engaging in any type of asset transfer.<\/p>\n","protected":false},"excerpt":{"rendered":"
Fraudulent conveyance is an action taken with the intention of placing an individual\u2019s or company\u2019s assets outside the reach of creditors or the government. This legal tactic can be used by individuals and corporations to avoid repaying debt or other obligations. What Does Fraudulent Conveyance Look Like? Fraudulent conveyance takes many forms. It can range […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-585","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\n\t\t\n