Which one of the following actions by a debtor constitutes an act of bankruptcy?
A) A fraudulent conveyance of liabilities to one of the creditors
B) A fraudulent transfer of money or assets
C) Assignment of liabilities to a trustee
D) Having more debts than assets
E) Generally meeting liabilities as they become due

Question

Quizplus · Accepted Answer

A fraudulent transfer of money or assets is considered an act of bankruptcy because it indicates the debtor's intent to defraud creditors by removing assets from the reach of those creditors, which is a key indicator of insolvency and an act of bankruptcy.

Which One of the Following Actions by a Debtor Constitutes