Ulysses Has a Number of Creditors and Has Recently Realized

question 66

Multiple Choice

Ulysses has a number of creditors and has recently realized that within a year he will have to declare bankruptcy.Ulysses transfers his house to his wife and uses most of his remaining assets to pay owed taxes to the government in order to avoid possible prosecution.He declares bankruptcy four months later.Which of the following is true?

• A)Both actions are void.
• B)The preference to the government is void,but not the settlement of the house.
• C)The settlement of the house is void,but not the governmental preference.
• D)Neither action is void.
• E)Neither is void,but only if Ulysses has declared them to be arms-length.

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