Talk:Fraudulent conveyance

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[edit] Benefit of recovered fraudulent transfers

User 63.90.118.98, I think you may have misunderstood the statement that the trustee can recover fraudulently transferred property for the benefit of all of the creditors when you made your change. Or, perhaps my statement of it was not clear. Standing is not the issue here but the practical result is: if the fraudulently transferred property is not recovered, it is not available for the creditors of the debtor in a liquidation or reorganization. That recovery benefit may be indirect in the strictly legal sense you posit, but it is the creditors who urge the bankruptcy trustees to file the petitions to recover fraudulent transfers so the property can be applied to their claims. Especially in liquidations, what the debtor gets from the recovery of a fraudulent transfer is serendipity (though the recovery might help a homeowner who made an unintentional fraudulently transfer of a residence for which an exemption was available). Finally, recovery of fraudulently transferred property is just as applicable to non-corporate debtors as well as corporate ones. Anoneditor 16:06, 23 June 2007 (UTC)