Legal Definitions - Statute of Elizabeth

Definition: The Statute of Elizabeth was a law passed in 1571 in England that aimed to prevent fraudulent conveyances made by debtors to avoid paying their creditors. It was also known as the Bankrupts Act of 1705, which contained similar provisions against such actions.

Example: If a person owes money to their creditors and they transfer their assets to a family member or friend for little or no money, this could be considered a fraudulent conveyance under the Statute of Elizabeth. The law allows creditors to challenge such transfers and recover the assets to pay off the debts owed to them.

Explanation: The Statute of Elizabeth was designed to protect creditors from debtors who tried to avoid paying their debts by transferring their assets to others. The law allows creditors to challenge such transfers and recover the assets to pay off the debts owed to them. This ensures that creditors are not left empty-handed and that debtors cannot cheat their way out of paying their debts.