What if I transferred my assets but didn't actually intend to defraud my creditor?
Posted on Oct 22, 2012 6:21am PDT
Since actual fraud cases are difficult for creditors to prove, creditors more often claim constructive fraud. Constructive fraud is a gift or sale of property for less than fair value (or
fair consideration), made in the face of a known or probable liability and which leaves the debtor insolvent. A transfer can be constructively fraudulent, even if you act innocently and without actual intent to hinder your creditors, but a creditor challenging your transfer must still prove each of these three elements.