The trustee in bankruptcy may claim property which was passed fraudulently to a third party at any time before the bankruptcy commenced.Which of the following defences would,if proven,allow the third party to retain the property?

Question

Quizplus · Accepted Answer

All of the defenses listed (A, B, and C) could potentially allow the third party to retain the property if proven. If the third party had no reason to suspect the debtor was about to become insolvent and paid market value for the property, this can demonstrate that they were a bona fide purchaser for value without notice of the fraudulent intent. Similarly, if the third party genuinely did not know the debtor's purpose was to defeat or delay creditors, they may have a defense. However, it ultimately depends on the facts and evidence presented.

The Trustee in Bankruptcy May Claim Property Which Was Passed