Where,just before declaring bankruptcy,a person transfers title of real property to his children telling them that he wants to protect the property from bankruptcy,the transfer is a fraudulent conveyance or transfer.

Question

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This transfer would be considered a fraudulent conveyance or transfer because the person made the transfer with the intention of protecting the property from being seized by creditors in bankruptcy. Such transfers made just before declaring bankruptcy are often considered fraudulent and can be reversed by the court.

Where,just Before Declaring Bankruptcy,a Person Transfers Title of Real Property