Reports of Cases Decided in the Court of Chancery of the State of New Jersey (Volume 79)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1912 edition. Excerpt: ...between a bankrupt and one who has purchased his property from his creditors upon a sale of collateral made with his consent were actually fraudulent, it must be found that there was a covinous agreement between the bankrupt and such purchaser to transfer the bankrupt's property with the intent to defraud creditors, and it is not sufficient to a determination of actual fraud to find that the debtor alone transferred his property with the intent to defraud. 5. In the pursuit of fraud ngainst creditors or in investigating with respect to it, the substance of the transaction is viewed, and not its form, and it is immaterial whether such fraud was perpetrated by means of judicial or other public sale, or whether it was by private agreement and transfer. j. Circumstances such as would put a reasonable person upon inquiry with respect to the financial condition of a transferrer will charge creditors or others dealing with a failing debtor with such facts as they would have learned had they properly investigated. 7. Transfers by a debtor while suits are pending against him are always suspicious circumstances such as would lead a reasonable man to investigate concerning the financial condition of his transferrer. 8. While a settlement upon one dependent upon the settler may not be considered as a badge of fraud, the dealings between near relatives, one of whom is largely indebted and the other of whom obtains his property, are viewed with suspicion. 9. Where one, either a creditor or a purchaser, takes property from a debtor whom he knows to be indebted or under circumstances that put him on inquiry as to the financial condition of his transferrer, he must, even in the absence of proof of a participation with the debtor in an intention to defraud...