Fraudulent and Voluntary Conveyances

Question 1

What makes a conveyance void under §55-80 and §55-81?

Answer 1

A conveyance by an insolvent debtor not for valuable consideration is void as to existing creditors.

Question 2

Are preferences among creditors allowed?

Answer 2

Yes, if they are bona fide payments for full value.

Question 3

§55-80 Fraudulent Conveyances
This statute addresses fraudulent transfers of property made by a debtor. Specifically:

Definition: A conveyance made by a debtor with the intent to hinder, delay, or defraud creditors is deemed void.
Key Points:
Creditors can challenge such conveyances in court to have them declared void.
The transferred property may be returned to the debtor’s estate and made available to creditors.
A conveyance made for fair value is not considered fraudulent, even if the debtor was insolvent at the time.
Preferences among creditors (bona fide payments for full value) are permitted and not fraudulent under this section.