Realizing that the financial health of his business was unlikely to recover from the increased competition in the market,Clive decided to transfer title to his marital home to his wife's name.Six months after the transfer,Clive was less concerned about the personal guarantee he had signed and was preparing to attempt informal negotiations with his creditors.In this instance,which of the following will most likely result?

Question

Quizplus · Accepted Answer

Transferring the title of his marital home to his wife's name could be seen as a fraudulent transfer, as Clive may have tried to hide his asset from creditors to avoid payment. If this is the case, creditors can petition for bankruptcy, and the court may rule that the transfer was fraudulent and reverse it. Therefore, choice A is the correct answer.

Realizing That the Financial Health of His Business Was Unlikely