Question

Six months before filing for bankruptcy, shirley sold her new car to her brother, claude, for $100 so that her creditors could not claim it. the market value of the car was $8,000 at the time of the sale. under these circumstances:

Answer 1

In this case, the transfer could be considered voidable by the trustees. This is because Shirley did not receive the fair value for the car, but simply received a negligible amount as a way of trying to defraud her creditors. In this case, the transfer could be voided.