Bostwick v. Blake

Citations

• 145 Ill. 85
• 34 N.E. 38

Syllabus

<p>1. Fraudulent Conveyance—void as to creditors. A fraudulent transfer passes.nothing as against creditors. A conveyance of real estate made in fraud of creditors is void as to them, and not merely voidable. For all purposes of appropriating it to the satisfaction of their demands, the property is to be deemed vested in the debtor.</p> <p>2. A debtor can not convey real estate to another to be held wholly or in part in secret trust for himself, so as to cut off the right of existing creditors. It matters not that the transaction may be upon a valuable consideration, if it lacks the element of good faith. In such case, the fraud being a continuing one, the conveyance will be void both as to existing and subsequent creditors.</p> <p>3. Same—effected by consent of debtor. It is not necessary that the debtor shall in person convey his property, to render his transfer fraudulent, but it will be sufficient if the steps taken by the grantee to obtain the title thereto, were by the consent and procurement of the debtor, with the secret understanding that the property was to be held for the former owner, the debtor.</p> <p>4. Same—obtaining title by sheriff's deed, to be held in secret trust. Where a party obtains a sheriff’s deed for the land of a debtor, in pursuance of an arrangement with the latter, and holds the same in secret trust for the latter, the conveyance will be fraudulent in law and void as to his creditors, both existing and subsequent.</p> <p>5. Attachment—right of interpleader—as to real and personal property. The right of interpleader, under section 29 of the Attachment act, extends to real as well as personal property attached. In either ease the question to be inquired into is the right of property. If the debtor has fraudulently divested himself of the legal title, the levy of an attachment thereon by a creditor will create a lien on the property with the same effect as if the fraudulent conveyance had never been made. The levy of the attachment is an