Matt is planning to file for bankruptcy.He wants to keep some of his property,so he gives certain jewelry to his parents,with the understanding that they will return it later.Also,Matt sells his car,worth $5,000,to his girlfriend for $100.These transfers are:

Question

Quizplus · Accepted Answer

The transfers made by Matt to his parents and girlfriend are considered fraudulent transfers as they are made with the intention to hide his assets from creditors. The transfer of jewelry to his parents is an attempt to keep it away from the hands of creditors, and the sale of the car for a nominal amount to his girlfriend is done to create an appearance of having less valuable assets than he actually does. Such transfers are a violation of bankruptcy laws and can be deemed fraudulent by the court.

Matt Is Planning to File for Bankruptcy