Fact Pattern 15-1A
Damian owns a pick-up truck and a motorcycle.He sells the motorcycle to Eden for $10,000.Eden pays for the cycle with a check,knowing that she had insufficient funds in her account to cover the amount.A week later,Damian files a petition in bankruptcy for relief through a liquidation.
-Refer to Fact Pattern 15-1.Regarding the sale of the cycle,the bankruptcy trustee can

Question

Quizplus · Accepted Answer

The sale of the motorcycle can be considered a fraudulent transfer because Eden knew that she did not have sufficient funds to cover the check used for payment. As such, the bankruptcy trustee can cancel the sale as a fraudulent transfer.

Fact Pattern 15-1A Damian Owns a Pick-Up Truck and a Motorcycle.He Sells the Motorcycle.He