Codeuvta04tests

Site.Codeuvta04tests History

Hide minor edits - Show changes to output

April 21, 2022, at 02:20 AM by 50.159.12.10 -
Added lines 1-37:
SECTION 4. TRANSFER OR OBLIGATION VOIDABLE AS TO PRESENT OR FUTURE CREDITOR.

§4 (a) A transfer made or obligation incurred by a debtor is voidable as to a creditor, whether the creditor’s claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation:

->(1) with actual intent to hinder, delay, or defraud any creditor of the debtor; or

->(2) without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor:

-->(i) 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; or

-->(ii) 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.

§ 4(b) In determining actual intent under subsection (a)(1), consideration may be given, among other factors, to whether:

->(1) the transfer or obligation was to an insider;

->(2) the debtor retained possession or control of the property transferred after the transfer;

->(3) the transfer or obligation was disclosed or concealed;

->(4) before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit;

->(5) the transfer was of substantially all the debtor’s assets;

->(6) the debtor absconded;

->(7) the debtor removed or concealed assets;

->(8) the value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred;

->(9) the debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred;

->(10) the transfer occurred shortly before or shortly after a substantial debt was incurred; and

->(11) the debtor transferred the essential assets of the business to a lienor that transferred the assets to an insider of the debtor.

§ 4(c) A creditor making a claim for relief under subsection (a) has the burden of proving the elements of the claim for relief by a preponderance of the evidence.