Fraudulent Conveyance Success Stories

In legal cases where the judgment debtor appears to have no assets, often it may be important to dig deeper or think strategically. For example, what type of lifestyle does the debtor live? Do the financial intel match that lifestyle? For example, based on cash in the bank and cash flow (income), does that match the ability to cover the mortgage, car loans, credit obligations, and living expenses? If the answer is no (or if its unknown), then an asset search to find evidence of fraudulent conveyance may be important.There are a few different types of fraudulent conveyance. The first is when the debtor attempts to put assets beyond the reach of creditors by selling, transferring, or hiding them. The second is when the debtor incurs excessive debt in order to make it difficult for creditors to collect. The third is when the debtor gives away assets for less than they are worth.All three of these types of fraudulent conveyance have been successfully challenged in court. In one case, a debtor hid assets by transferring them to family members and then filing for bankruptcy. The court found that the debtor had committed fraud and ordered the assets to be returned to the creditors.In another case, a debtor incurred excessive debt by taking out loans from multiple lenders and then using the money to buy luxury items. The court found that the debtor had committed fraud and ordered the assets to be returned to the creditors.In yet another case, a debtor gave away assets for less than they were worth in an attempt to put them beyond the reach of creditors. The court found that the debtor had committed fraud and ordered the assets to be returned to the creditors.If you think that a debtor has hidden or transferred assets in order to put them beyond the reach of creditors, contact an experienced attorney or professional who can help you investigate and challenge the transfer. Doing so may help you recover some or all of the debt that is owed to you.Fraudulent conveyance is a serious issue, but fortunately Carl Mason P.I. has experience dealing with it. If you have a debtor that has hidden or transferred assets in an attempt to put them beyond the reach of creditors, don’t hesitate to contact an Carl Mason P.I. for help. With their help, you may be able to recover some or all of the debt that is owed to you.—This blog is intended to provide only a brief outline for our site visitors. You should always seek legal advise for your situation. Some of our posts are written by 3rd parties and may not reflect the position of Carl Mason P.I. and also may not be ideal guidance for your case. See our Terms and Conditions if you plan to hire Carl Mason P.I.