![]() Did not receive a reasonably equivalent value in exchange for the transfer and.Thus, UVTA authorizes a creditor to void a transaction between a debtor and another party if the debtor: The claim is voidable whether the creditor’s claim arose before or after the transfer was made or the obligation was incurred. (B) Intended to incur, or believed or reasonably should have believed that the debtor would incur, debts beyond the debtor’s ability to pay as they became due. (A) Was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction. The UVTA applies to transfers or obligations made or incurred with actual intent to hinder, delay, or defraud any of the debtor’s creditors where the debtor fails to receive a reasonably equivalent value in exchange for the transfer or obligation, and the debtor either was: The California legislature enacted the Uniform Voidable Transactions Act in 2015, which replaced similar legislation known as the Uniform Fraudulent Transfer Act. Typically, an action under the UVTA is available at any time a fraudulent transfer is discovered or reasonably suspected, and preferably the action is filed long before the debtor files for bankruptcy relief. Of course, this law applies to debtors in bankruptcy. Bankruptcy Code, since any recovery under UVTA benefits the plaintiff directly, while any recovery by the trustee under § 548 benefits the entire pool of unsecured creditors in the bankruptcy case. The procedures available under the UVTA are more advantageous than the provisions contained in § 548 of Title 11, the U.S. The UVTA only allows a creditor to undo a transaction where “reasonably equivalent value” was not received. ![]() It is important to note that California property owners are permitted to sell their property if they receive a commensurate price in return. ![]() In some circumstances, California law criminalizes transferring property with the intent to make it more difficult for a creditor to collect. Applicable transactions under the UVTA are voidable as to creditors. The UVTA supersedes the former the Uniform Fraudulent Transfer Act. In California, the Uniform Voidable Transfer Act (UVTA) provides some protection for creditors in this circumstance. Whether they are devious, desperate, or dishonest, some debtors trying to appear judgment-proof, will fraudulently conceal assets through some third-party transfer.
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