When a debtor voluntarily gives his property over to a trustee in bankruptcy, this is referred to as a(n)

Question

Quizplus · Accepted Answer

When a debtor voluntarily gives his property over to a trustee in bankruptcy, it is called an assignment into bankruptcy. An act of bankruptcy is a specific action or behavior by a debtor that can trigger involuntary bankruptcy proceedings, while fraudulent preference and fraudulent conveyance refer to actions taken by a debtor to hide or transfer assets in order to avoid creditors.

When a Debtor Voluntarily Gives His Property Over to a Trustee