fraudulent conveyance

[funigolf]

What is the name of your state (only U.S. law)? NC
I need to raise capital to to keep my business afloat. I have an unconditional guarantee against a commercial note which is in danger of foreclosure although the action has not been undertaken Can I sell my home and use the proceeds to reestablish my solvency. Or might this be construed as a fraudulent conveyance should I not use all of the proceeds....Pat

 

[JETX]

Can I sell my home and use the proceeds to reestablish my solvency. Or might this be construed as a fraudulent conveyance should I not use all of the proceeds.

Where is the 'fraud' in selling property (IF you have free and clear title) and then using the proceeds to pay other obligations??

fraudulent conveyance
n. the transfer (conveyance) of title to real property for the express purpose of putting it beyond the reach of a known creditor. In such a case the creditor may bring a lawsuit to void the transfer. However, if the transfer was made without knowledge of the claim (or before a debt has matured), for other legitimate reasons, and/or in the normal course of business, then the creditor's attempt to obtain a judgment setting aside the conveyance will probably fail.

The simple fact that you are concerned about this makes me think that your 'proposal' might be fraud to someone. Who are you concerned about... and why??