Definition of Fraudulent conveyance:
Transfer of property by a debtor, with the intent and purpose of moving it outside the reach of creditors existing or impending claims. Such conveyances are generally annulled by the courts.
Fraudulent conveyance is the illegal or unfair transfer of property to another party via a bankruptcy trustee. One type, called "actual fraud," is meant to defer, hinder, or defraud creditors, or to put such property out of the reach of a creditor in anticipation of or during bankruptcy proceedings, according to the Uniform Fraudulent Transfer Act (UFTA) and federal Bankruptcy Code. Fraudulent conveyance can apply to small amounts of money — for instance, in a case where an individual sold all of their possessions for an insignificant amount of money to a spouse, relative, business partner, or friend. The other type of fraudulent conveyance, "constructive fraud," occurs when creditors receive less than they have a right to under the law.
Fraudulent conveyance falls under civil law, not criminal, generally speaking. If the transfer of property is determined to be fraudulent, a court can require the person holding the assets (the person to whom the conveyance was made) to hand the assets, or an equivalent monetary value, over to the creditor.
Meaning of Fraudulent conveyance & Fraudulent conveyance Definition