Adkisson's Voidable Transactions - previously known as - Fraudulent Transfers

Caution state

law variances!

Common Law Fraudulent Transfer

 

The UVTA does not displace other law relating to fraudulent transfers, as UVTA § 12 makes clear. In many states, common law fraudulent transfer survives as a viable cause of action. While each state may vary its common law fraudulent transfer claim slightly, the following is a good example of how common law fraudulent transfer is stated:

 

“A party alleging a fraudulent transfer or conveyance under the common law bears the burden of proving either: (1) that the conveyance was made without substantial consideration and rendered the transferor unable to meeting his obligations or (2) that the conveyance was made with a fraudulent intent in which the grantee participated.”

 

Consedine v. Demeusy, 2015 WL 8487881, at *2 (Conn.Super., Nov. 17, 2015).

 

Common law fraudulent transfer is, in fact, often plead as an alternative cause of action to the UVTA claim. While usually redundant, there may be some instances where the common law fraudulent transfer claim survives, such as that it may have a longer effective Statute of Limitations than under the extinguishment provisions of the UVTA, since in some states the Statute of Limitations for a common law fraudulent transfer action does not begin to run until the creditor obtains a judgment against the debtor -- which may result in a far longer limitations period than the extinguishment period of the UVTA.

UVTA - Logical Organization (Designed For Litigators)

Click here to go to the Voidable Transactions Decision Chart

Overview of UVTA -- The process and result

 

UVTA - Numerical Organization (Confusing & Difficult To Use)

The Uniform Law Commission's complete copy of the UVTA with comments in PDF format is available here. The webpage for the UVTA, showing states that have enacted and much other information regarding the Act is found here.

 

1 - Definitions

(1) Affiliate -- (2) Asset -- (3) Claim -- (4) Creditor -- (5) Debt -- (6) Debtor -- (7) Electronic -- (8) Insider -- (9) Lien -- (10) Organization -- (11) Person -- (12) Property -- (13) Record -- (14) Relative -- (15) Sign -- (16) Transfer -- (17) Valid Lien

2 - Insolvency

3 - Value

4 - Transfer Or Obligation Voidable As To Present Or Future Creditor

(a)(1) {Intent Test} -- (a)(2)(i) {Capitalization Test} -- (a)(2)(ii) Equity-Sense Insolvency Test

(b) {Badges of Fraud}

5 - Transfer or Obligation Voidable As To Present Creditor

(a) {Insolvency Test} -- (b) {Insider Preference Test}

6 - When Transfer Is Made Or Obligation Is Incurred

7 - Remedies Of Creditor

8 - Defenses, Liability, And Protection Of Transferee Or Obligee

{Main Provisions} -- (b) and (c) {Money Judgment}

9 - Extinguishment Of Claim For Relief

10 - Governing Law

11 - Application To Series Organization

12 - Supplementary Provisions

13 - Uniformity Of Application And Construction

14 - Relation To Electronic Signatures In Global And National Commerce

15 - Short Title

16 - Repeals; Conforming Amendment

 

Fraudulent Transfers In Bankruptcy

 

 

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© 2017 Jay D. Adkisson. All rights reserved. No claim to government works or the works of the Uniform Law Commission. The information contained in this website is for general educational purposes only, does not constitute any legal advice or opinion, and should not be relied upon in relation to particular cases. Use this information at your own peril; it is no substitute for the legal advice or opinion of an attorney licensed to practice law in the appropriate jurisdiction.  This site http://www.voidabletransactions.com Contact: jay [at] jayadkisson.com or by phone to 949-200-7773 or by fax to 877-698-0678.