Definition from Nolo’s Plain-English Law Dictionary
Act allowing a creditor to sue a debtor who intended to defraud a creditor by transferring property to another person without receiving reasonably equivalent value in return. In other words, if a business does not pay off its debts before selling its assets, the creditors of the business can void the transfer or get a judgment against the new owner of the assets and seize them to pay the debts. Most states have adopted this Act or an older version of it.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:16 pm