Lesson: Fraudulent Conveyances

In this lesson, Nick Palazzolo, CPA, dives into the tricky area of fraudulent conveyances, shedding light on the ramifications for such transactions between debtors, creditors, and guarantors. Nick elucidates the concept by describing scenarios where debtors might attempt to obstruct, impede, or deceive creditors by hiding or transferring assets. He outlines specific indicators that can suggest a transfer was fraudulent, such as insider involvement, undisclosed transactions, and disproportionality between the asset's value and its sale price. Nick takes you through the thought process and legal analysis used to determine if a transaction should be considered a fraudulent conveyance and the potential legal remedies available to rectify the situation for creditors. This exploration offers key insights into addressing fraudulent activities before or right outside of formal bankruptcy proceedings.