The term "fraudulent conveyance" (or fraudulent transfer) refers to the transfer of valuable assets from a company or person which (i) occurs when the company or person is technically insolvent or renders the company or person insolvent and (ii) is made for less than reasonably equivalent consideration. The transfer of property in such a circumstance is considered a fraud on creditors of the company or person making the transfer. A bankruptcy court can set aside such a transfer as a fraudulent conveyance (or fraudulent transfer). Whether a transfer or conveyance is fraudulent is governed by federal and state laws.