Case Summary:
The trustee sought to recover a parcel of real estate as a fraudulent transfer. The defendant had purchased the property from his son pursuant to an unrecorded land contract and received title to the property via quit claim deed about ten months prior to the bankruptcy filing. The trustee contended that execution of the quit claim deed constituted a fraudulent transfer as the debtor did not receive reasonably equivalent value for the property. A “transfer” occurs for purposes of fraudulent conveyance law at the time when a subsequent purchaser could no longer acquire an interest in the property which is superior to that of the transferee. The defendant took actual possession of the property long before the date of the quit claim deed and a subsequent purchaser would have had constructive notice of his claim. The trustee likewise could not avoid the transfer as a fraudulent conveyance.

Statute/Rule References:
11 U.S.C. § 548 -- Fraudulent Conveyance
Wis. Stat. § 242 -- Fraudulent Conveyance

Key Terms:
Fraudulent Conveyance