Fraudulent Transfer Act
- A law that allows a creditor to take legal action against a debtor who knowingly transferred property to someone else without receiving equal value in return, essentially trying to evade paying their debt
- Under the Fraudulent Transfer Act, creditors could invalidate the sale of the company's assets because they didn't receive enough payments before the transaction.
- The bank invoked the Fraudulent Transfer Act to claim the debtor's assets that were transferred without settling their debt.
- The debtor was sued by his creditors under the Fraudulent Transfer Act for giving away his property to avoid paying his debts.