A transfer of property made with intent to hinder, delay, or defraud creditors, or made for inadequate consideration while insolvent. Such transfers can be set aside by courts to protect creditors' rights.
Combines 'fraudulent' from Latin 'fraudulentus' (deceitful) and 'conveyance' from Old French 'conveer' (to escort, transport). The legal doctrine developed in 16th-century English law to prevent debtors from hiding assets from creditors through sham transfers.
Fraudulent conveyance law is like having a legal time machine - courts can reach back and undo property transfers that were designed to cheat creditors, even if they happened years ago! The classic red flag is selling your mansion to your brother for $1 right before declaring bankruptcy.
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