Phone Call Us 414-326-9231
Toll Free 866-678-9352
Text Us 414-277-7742

Recent USSC ruling clarifies relationship between 'actual fraud' and fraudulent conveyances

We've been looking in recent posts at the issue of fraudulent transfer and what bankruptcy law says on the matter. Last time, we mentioned the term actual fraud, which is a term used in the bankruptcy code. The law prohibits the discharge of debts obtained by false pretenses, false representation or actual fraud.

Last month, the United States Supreme Court ruled in a case involving an issue which was causing a split among circuit courts: whether the term actual fraud includes fraudulent conveyances, even those in which there was no false representation. The court ultimately ruled in the case that the term actual fraud does include fraudulent conveyance schemes, including those in which there is no false representation made. 

Without going too much into the details of the case, the court based its decision at least partly on the fact that the term fraud, in the context of bankruptcy, historically meant asset transfers which impaired a creditor's ability to collect a debt. The upshot of the case is that a fraudulent conveyance could be considered actual fraud in bankruptcy, which can result in inability to discharge debts.

Those who are considering a bankruptcy filing should always work with an experienced advocate to ensure that they have guidance navigating bankruptcy law and the court system. This is particularly important for those who have made transfers that could be considered fraudulent conveyances prior to their filing. Working with an experienced advocate ensures that unnecessary problems are avoided in bankruptcy and that any problems which do come up are handled as effectively as possible. 

No Comments

Leave a comment
Comment Information

Contact Our Milwaukee Law Firm

Reach Miller & Miller Law, LLC, online or call us at 414-326-9231 to schedule a free initial consultation. Our law office also provides Spanish language services. Se habla español.

To schedule an initial consultation, call 414-326-9231 or contact Miller & Miller today.

Free Case Evaluation

* indicates required field

Milwaukee Office
633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-326-9231
Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Law Office Map

Kenosha Office
6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 414-326-9231
Phone: 262-326-1669
Kenosha Law Office Map

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 414-326-9231
Phone: 262-261-0665
Brookfield Law Office Map

Madison Office
2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 414-326-9231
Phone: 608-260-7133
Madison Law Office Map

Glendale Office
6001 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-326-9231
Phone: 414-973-8662
Glendale Law Office Map

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Map & Directions