Video: Fraudulent Transfers

In this lesson, Nick Palazzolo, CPA, dives into the murky waters of fraudulent transfers, explaining the concept with clear examples that illustrate what constitutes such a practice. He unpacks the scenario where a debtor intentionally disposes of assets at values way below market price in an effort to obstruct or cheat creditors. With a sense of determination, Nick discusses the authority of bankruptcy trustees to invalidate these dubious transactions if they fall within a two-year window of a bankruptcy filing and meet certain criteria. Using the practical instance of a severely undervalued car sale preceding a bankruptcy, Nick conveys the factors that trustees consider to identify and potentially reverse these fraudulent moves.