Fraudulent Transfer

Any transfer of the debtor's property Example: Debtor sells his mother his $15,000 car for $100 so that it does not become part of the bankruptcy estate
 * Made on or within two years of filing petition that is made with the intent to hinder, delay, or defraud creditors, OR
 * Made for less than reasonable value

Key to successful recovery by the trustee is proving INTENT

Circumstantial evidence used to prove that:
 * 1) Debtor had knowledge he could not pay creditors, and
 * 2) Close relationship between transferor and transferee

Avoidance / Recovery of "Retention Bonuses"
Trustee can avoid a transfer to an insider in an employment contract and not in the ordinary course of business

Retention bonuses can be kept by insiders only when:
 * 1) They were paid in response to bona fide offers to the insider, and
 * 2) The individual's services are essential to the survival of the business, and
 * 3) The amount of the bonus is not more than 10 times the mean of similar bonuses paid to non-management employees during the year

Avoidance of Transfers to Certain Asset Protection Trusts
Trustee may avoid a transfer to a self-settled trust made within 10 years of the filing by a debtor where Focus on transfers made in anticipation of money judgements, settlements, civil penalties, or criminal fines which debtor believed would be incurred through any violation of federal or state securities laws or fraud, deceit, or manipulation in a fiduciary capacity, or in connection with the purchase or sale of securities registered under the Federal Securities Act
 * 1) The debtor is a beneficiary and
 * 2) The transfer was made with actual intent to hinder or delay creditors