Are they fair?
Part of a bankruptcy trustee's duties is to investigate a
bankrupt's affairs. Those investigations include whether the
bankrupt has been involved in any 'void transactions'.
Void transactions involve a bankrupt's property, which if
they had not happened, would have resulted in that property being
available to the bankruptcy trustee to realise for the
creditors' benefit.
Void transactions are deemed to take assets otherwise available
to all creditors out of the bankruptcy trustee's hands. These
transactions are often made to family members, or suppliers, who
may be legitimate creditors but are inherently receiving a benefit
not afforded to the other creditors. Sometimes these parties are
not creditors, and the transfer of assets is simply an attempt to
'defeat' creditors.
