Transactions to delay, hinder or defraud creditors

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  • (a) Whenever the assets of the estate are insufficient to satisfy the funeral charges, expenses of administration, and claims against the estate, and the deceased in his lifetime has made or suffered any conveyance, transfer, or sale of any property, real or personal, or any right or interest therein, with intent to delay, hinder, or defraud creditors, or when such conveyance, transfer, or sale has been so made or suffered that the same is void in law as against creditors, or when the deceased in his lifetime has suffered, consented or procured any judgment or decree to be given against him with such intent or in such manner as to be likewise void, the executor or administrator shall make application by petition to the court for leave to commence and prosecute to final judgment or decree the necessary and proper actions or proceedings to have the conveyance, transfer, sale, or judgment declared void, and the property affected thereby discharged from the effect thereof.

  • (b) If upon the application it appears to the court that the assets are insufficient for the purposes specified in the subsection (a) of this section, and that it is probable that the conveyance, transfer, or judgment was made, suffered, consented to, or procured with the intent or in the manner specified in such subsection, it shall make the order directing the proceedings to be commenced and prosecuted as to any or all of the matters alleged in the petition and necessary to supply the deficiency in the assets.

  • (c) The property recovered by means of any proceeding in pursuance of subsections (a) and (b) of this section shall be sold and appropriated to supply the deficiency mentioned in subsection (a) of this section in the same manner as other like property. The right to or interest in the surplus, if any, remains as if such proceeding had not been allowed or commenced.


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