United Kingdom transactions defrauding creditorstransactions at undervalue

Delaney v Chen

[2010] EWCA Civ 1455; [2011] BPIR 39

JurisdictionUnited Kingdom

CourtCourt of Appeal (Civil Division)

Year2011

StatusBinding authority

Key Principle

A claim under section 423 of the Insolvency Act 1986 (transactions defrauding creditors) requires both a transaction at an undervalue and a prohibited purpose of putting assets beyond creditors' reach; where the debtor receives full value in money or money's worth the transaction is not at an undervalue and the claim fails notwithstanding a proven prejudicial purpose.

Area of Law

General

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