Why Shouldn't I Be Able to Cure a Fraudulent Conveyence?
In bankruptcy today Professor Marcus Cole covered Fraudulent Conveyences. Say, unbeknownst to me, you are undercapitalized or going broke and you sell me your $100,000 house for $25,000. It is so far below reasonable value that I think I am getting a steal, until you file for Bankruptcy and the trustee takes the property back, under the guise that this was a fraudulent transaction. Oh yeah, I don't necessarily get my $25,000 back - I'm just another unsecured creditor in line. At this point, I'd gladly fork over the $75,000 difference between market value and what I paid so that the transfer would be legit (I could then sell it for around market value and have a better chance of getting more of my $25,000 back). But of course, the trustee will not want me to do that - this will shrink the common pool of assets. Something about this doesn't feel right, but hey, its bankruptcy - none of it really "feels right."