A potential fraudulent transfer problem will arise on a regular basis in a bankruptcy proceeding. A typical transfer that may come under scrutiny would be gifts to family members that occurred recently. This could take the form of a parent purchasing a car for their child, which is put in the child’s name. Or paying a good friend’s debt first for doing repair work on your house. These situations arise all the time in the lives of a client leading up to bankruptcy. They are trying to conceal their problems from those close to them. Unfortunately, these will usually end up being fraudulent transfers. Fortunately an innocent transfer will only result in voidance of the transfer and not something more drastic like a debtor losing his “good faith” status.