Two years before going bankrupt, Homer sold his second house in Mount Royal to his son Bart for $100. The creditors are disappointed because this residence had a market value of two million and they know that some transfers can be unwound within one year of bankruptcy. What should happen with this transfer?

Selma also went bankrupt. A year after her absolute discharge from bankruptcy, she won $10,000,000 in a lottery. Her creditors (from prior to her bankruptcy) want to know what they can do. What, if anything can they do, and why do you say so?

Answer rating: 100% (QA)

Answer In the case of Homer this transfer can be challenged as a fraudulent conveyance A fraudulent ... View the full answer