Themis Essay 4903

Question 1

Certain transfers by a debtor may be

Answer 1

set aside by the debtor’s creditors.

Question 2

Existing creditors may challenge either

Answer 2

fraudulent transfers or voluntary transfers made for less than fair market value.

Question 3

As a basic rule, a gift, conveyance, assignment, or transfer or real or personal property that is intended to defraud creditors may be

Answer 3

set aside.

Question 4

A conveyance to a bona fide purchaser who is unaware of the transferor’s fraudulent intent may

Answer 4

not be set aside.

Question 5

A conveyance, assignment, or transfer of real or personal property not made for valuable consideration by an insolvent transferor may

Answer 5

be set aside by existing creditors, and intent to defraud need not be proven.

Question 6

A conveyance by the debtor to the debtor’s spouse is presumed to be

Answer 6

fraudulent.

Question 7

When a debtor makes a conveyance to their spouse, the transferee spouse has the burden of establishing by clear and convincing evidence that

Answer 7

the transfer was made for valuable consideration without an intent to defraud.

Question 8

Property held by spouses in a tenancy by the entirety is

Answer 8

immune from the claims of a creditor against only one spouse.

Question 9

The test for insolvency is whether

Answer 9

the transferor’s liabilities at the date of the transfer exceeded the amount of his assets exclusive of the transferred property, on the same date.

Question 10

In determining what constitutes valuable consideration, courts have indicated that it is

Answer 10

less than the “reasonable equivalent value” standard adopted by federal bankruptcy law, and have suggested that any consideration would be sufficient.

Question 11

An insolvent debtor may generally make a valid transfer of a portion or the whole of his assets to a bona fide creditor of an existing indebtedness, if

Answer 11

that is the sole purpose of the debtor and the transfer is for full value.