Fraudulent Settlement - Definition - Law Dictionary Home Dictionary Definition fraudulent-settlement

Definition :

Fraudulent settlement. If a marriage settlement comprises property without which the settlor can-not pay his debts, or contain a covenant for the future settlement of property in which the settlor has no present interest, then, if the settlor become bankrupt, and the settlement appears to have been made to defeat creditors, or was unjustifiable having regard to the state of the settlor's affairs, the Bankruptcy Court may refuse an order of discharge, as if he had been guilty of fraud: (England) Bankruptcy Act, 1914, s. 27.