UVTA Decision Path

Decision_Path Maindecisionpath

VOIDABLE TRANSACTION DECISION PATH

While the structural arrangement of the statutory text of the UVTA is, like its predecessors, insufferable, the actual decision-making process that a litigator will go through to determine if a fraudulent transfer exists is actually relatively straightforward and not complex. The following decision path illustrates this process. While this decision path isn't exactly right, see Note below the chart, it should assist litigators in reaching a quick conclusion as to whether a given voidable transaction action is viable.

Step #1. Is The Transfer Voidable?

The creditor must satisfy at least one of the following tests:
Sinking Insolvency Test § 4(a)(2)(ii)
Intent Test § 4(a)
If the creditor can satisfy at least one test, then go to Step #2. If not, the creditor loses.

Step #2. Can The Transferee Assert A Defense?

The transferee must establish at least one of the following defenses:
If the transferee can establish at least one defense, the creditor loses. If not, then go to Step #3.
NOTE: Some of the tests have their own specific defenses that a transferee in a particular case might utilize. These defenses are considered on the page for each test.

Step #3. Does The Creditor Have A Remedy?

The creditor must establish the availability of at least one remedy:
Non-Monetary Remedy (Avoidance, etc.) § 7
Money Judgment § 8(b) and (c)
If the creditor can establish the availability of at least one remedy, the creditor prevails. If not, the creditor loses.

NOTE: Arguably, one might look at the defenses first, i.e., if the transferee was in good faith and gave reasonably equivalent value, or if the action has been extinguished by the passage of time, then the remainder of the analysis can be no more than academic. However, at least with the extinguishment issue, this can become a "chicken/egg" sort of question, as there are different extinguishment periods for different sorts of voidable transactions.




DECISION PATH TOPICS AND OPINIONS


© 2022 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 https://voidabletransactions.com Contact: jay [at] jayad.com or by phone to 702-953-9617.