Brian filed for bankruptcy. He owed 3 different creditors: BigBox Co., MediumBox Co., and SmallBox Co. Immediately after filing for bankruptcy, Brian sold his car for $5,000. He used the money to pay the entire debt that he owed to BigBox Co. MediumBox Co. accused Brian of making a fraudulent conveyance when he sold his car. How will the court rule?
A) The sale was not fraudulent conveyance, as cars are exempt.
B) The sale was a fraudulent conveyance since Brian could have received more money from the sale of his car.
C) The sale was not a fraudulent conveyance since Brian used the proceeds to pay off a debt owed.
D) The sale was a fraudulent conveyance because Brian should have first sought the court's permission to sell the car.
E) The sale was a fraudulent conveyance because Brian should have split the proceeds among all three creditors.
Correct Answer:
Verified
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