Actual Fraud Law and Legal Definition

Actual fraud is defined in bankruptcy as “any deceit, artifice, trick, or design involving direct and active operation of the mind, used to circumvent and cheat another--something said, done, or omitted with the design of perpetrating what is known to be a cheat or deception.” Cheeks v. Taylor (In re Taylor), 2009 Bankr. LEXIS 3336 (Bankr. D. Md. Oct. 1, 2009)