Which one of the following actions by a debtor constitutes an act of bankruptcy?
A) Having more debts than assets
B) A fraudulent transfer of money or assets
C) Generally meeting liabilities as they become due
D) A fraudulent conveyance of liabilities to one of the creditors
E) Assignment of liabilities to a trustee

Question

Quizplus · Accepted Answer

A fraudulent transfer of money or assets constitutes an act of bankruptcy. It is a deliberate attempt to avoid paying off debts and can lead to the debtor being declared bankrupt.

Which One of the Following Actions by a Debtor Constitutes