Adkisson's

Voidable Transactions

 - previously known as -

Fraudulent Transfers

 

Caution state law variances!

My Contemporary Distillation

 

Transfers intended to hinder, delay or defraud the rights of creditors have so proliferated in number and variety that they diminish the due execution of law and justice and threaten orderly commerce; therefore, such transfers shall be void and of no legal effect whatsoever, and without regard to whether such transfers are otherwise legal.

 

The parties to such transactions must appear in court, and if the transactions are not bona fide and made with good consideration, those parties are liable to the forfeiture of one year's value of the real property so transferred, and the full value of any personal property so transferred, with half of that penalty going to the Crown and the other half going to the adversely affected creditor; further, a person convicted of such a transaction shall be incarcerated for six months without bail or personal recognizance by another.

 

These penalties shall not apply, however, to those merely holding tenancies in land, or reversionary or remainder interests, or rights to reversions or remainders.

 

This Act shall also not apply to those who hold an interest in property by way of a Writ of Forme Downe [an informal medieval letter-writ, apparently operating similar to an advisory ruling].

 

This Act shall not apply to those who make bona fide transfers, exchange good consideration, and are otherwise in good faith and not knowingly in collusion.

 

My Translation Into Modern English (More-Or-Less)

 

For the avoiding and abolishing of feigned covenants and fraudulent feoffments, gifts, grants, alienations, conveyances, bonds, suits, judgments and executions, as well of lands and tenements as of goods and chattels, more commonly used and practiced in these days, then has been seen or heard of heretofore; feoffments, gifts, grants, alienations, conveyances, bonds, suits, judgments and executions have been and are devised and contrived of malice, fraud, conspiracy, collusion or guild, to the purpose and intent to delay, hinder or defraud creditors and others of their just and lawful actions, suits, debts, accounts, damages, penalties, forfeitures, heriots, mortuaries, and reliefs, not only to the let or hinderance of the due course and execution of law and justice, but also to the overthrow of all true and plain dealing, bargaining, and arrangements between men, without therewith no commonwealth or civil society can be maintained or continued: be it therefore declared, ordained, and enacted by the authority of the present Parliament, that all and every feoffment, gift, grant, alienation, bargain, and conveyance of lands, tenements, hereditaments, goods, chattels, or any of them, or of any lease, rent, comons, or other fees or charge out of the same lands, tenements, hereditaments, goods and chattels or any of them, by writing or otherwise, and all and every bond, suit, judgment and execution at any time, had or made since the beginning of the Queen's reign that now is or at any time hereafter to be had or made, to or for any intent or purpose before declared and expressed, shall henceforth deemed and taken, only as against that person or persons his or their heirs, successors, executors, administrators and assigns and every one of them, whose actions, suits, debts, accounts, damages, penalties, forfeitures, heriotts, mortuaries, and reliefs, by such guileful, conspiratory, or fraudulent devices and practices as is aforesaid, are shall or ought be in any ways disturbed, hindered delayed or defrauded, to be clearly and utterly void frustrate and of none effect; any pretense, color, feigned consideration express of use or any other matter or thing to the contrary notwithstanding.

 

And be it further enacted by the authority foresaid, that all and every the parties to such feigned covenant or fraudulent feoffment, gift, grant, alienation, bargain, conveyance, bond, suites, judgments, executions and other things before expressed, or being privy or knowing the same of any of them, with at any time after the tenth day of June next coming shall wittingly and willingly put in your vow maintain justice or defend the same or same or any of them, as true simple and done had or made bona fide and upon good consideration, or shall alienate or assign such lands, tenements, goods, leases or things before mentioned, to him or them conveyed as aforesaid, or any part thereof, shall incur the penalty and forfeiture of one year's value of the said lands, tenements, hereditaments, leases, rents, comons or other fees of or out of the same, and the whole value of said goods and chattels, and also so much money as are and shall be contained in such covenants and feigned bond; the one half whereof to be the Queen's, her heirs and successors, and the other half to the party or parties grieved by such feign and fraudulent feoffment, gift, grant, alienation, bargain, conveyance, bonds, suits, judgments, executions, leases, rents, comunes, fees, charges and other things aforesaid; to be recovered in the Queen's courts of record by action of debt, bill, complaint, or information, wherein none assign, protection or wager of law shall be admitted for the defendant or defendants; and also being thereof lawfully convicted, shall suffer imprisonment for one-half year without bail or personal recognizance by another.

 

Provided always and be it further enacted by the authority foresaid, that whereas sundry common recoveries of lands, tenements, and hereditaments have heretofore been had and hereafter may be had against tenant in tail or other tenant of the freehold, the reversion or remainder, or the right of reversion or remainder then being in any other person or persons, that every such common recovery heretofore had and hereafter to be had of any lands, tenements, or hereditaments shall, as touching such person or persons, which then had any remainder or reversion, or right of remainder or reversion, and against the heirs of every of them, stand, remain, and be of such like force and effect, and of none other, as the same should have been if this Act had never been made.

 

Provided always and be it further enacted by the authority aforesaid, that this Act or any thing therein contained shall not extend to make void any estate or conveyance, by reason of any person or persons shall use any voucher in any Writ of Forme Downe now depending or hereafter to be depending; but that all and every such vouchers in any Writ of Forme Downe, shall stand and be in like force and effect as if this Act had never been made; any thing before in tis Act contained to the contrary notwithstanding.

 

Provided also and be it enacted by the authority aforesaid, that this Act and any thing therein contained shall not extend to any estate or interest, in lands, tenements, hereditaments, leases, rents, comons, fees, good, or chattels, had made, conveyed or assured or hereafter to be made, conveyed, or assured, with estate or interest is or shall be upon good consideration, and bona fide lawfully conveyed or assured to any person or persons or bodies politic or corporate, not having at the time of such conveyance or assurance to them made any manner of notice or knowledge of such conspired fraud or collusion as is aforesaid; any thing before mentioned to the contrary hereof notwithstanding.

 

This Act to endure to the end of the first Session of the next Parliament.

 

The Medieval-Period Text

 

The Medieval-period text is found at https://voidabletransactions.com/cases/fca1571.pdf

 

 

C O M M O N      P A G E      F O O T E R

UVTA AUDIO PRESENTATION

 

Need to become fluent in the UVTA quickly? This four-hour audio program by Jay Adkisson and Dave Slenn, ABA Advisors to the UVTA Drafting Committee, explains key features of the UVTA, how they operate, and why. Hosted by Leimberg Information Services. Click here for more

RECENT ARTICLES ON FRAUDULENT TRANSFERS

 

2019.05.30 ... Understanding The Elements Of The UVTA Tests For A Voidable Transaction

2019.05.20 ... Good Faith Not Enough For Transferee To Establish Fraudulent Transfer Defense In Hawk

2019.03.31 ... Voidability Of Sham Lawsuit And Judgment At Issue In Chen

2019.02.22 ... California Court Of Appeals Swings And Misses On Pre-Marital Fraudulent Transfer Agreement In Sturm

2019.02.12 ... Why The Mere Incorporation Or Formation Process For A New Entity Is Not A Fraudulent Transfer

2019.01.30 ... Resignation Of Corporate Officer Not A Fraudulent Transfer In Texas Opinion

 

Many more articles on voidable transactions law found here

 

UVTA - LOGICAL ORGANIZATION (Designed For Litigators)

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

 

OTHER SOURCES OF FRAUDULENT TRANSFER LAW

 

Fraudulent Transfers In Bankruptcy - Main Page

 

28 U.S.C. § 3301, et seq. - Where United States is the creditor

 

Common Law Fraudulent Transfer - Still exists in most states

 

Fraudulent Conveyances Act of 1571 a/k/a Statute of 13 Elizabeth - The medieval statute to which the modern American UVTA traces some of its roots.

 

TOPICAL COURT OPINIONS

OTHER RESOURCES

OTHER INFORMATIONAL WEBSITES BY JAY ADKISSON

 

  • About Jay Adkisson - More about Jay D. Adkisson, background, books, articles, speaking appearances - https://jayadkisson.com/

 

  • Captive Insurance Companies - Licensed insurance companies formed by the parent organization to handle the insurance and risk management needs of the business, by the author of the best-selling book on the topic: Adkisson's Captive Insurance Companies - https://captiveinsurancecompanies.com/

 

 

  • Collecting On A Judgment - An explanation of common creditor remedies, strategies and tactics to enforce a judgment, including a discussion of common debtor asset protection strategies - https://collectingonajudgment.com/

 

  • Private Retirement Plans - An exploration of a unique creditor exemption allowed under California law which can be very beneficial but is often misused - https://privateretirementplans.com/

 

  • Charging Orders - The confusing remedy against a debtor's interest in an LLC or partnership is explained in reference to the Uniform Partnership Act, the Uniform Limited Partnership Act, and the Uniform Limited Liability Company Act - https://chargingorder.com/

 

  • Protected Series LLCs - An examination of the single most complex statutory legal structure yet created, with particular reference to the Uniform Protected Series Act of 2017 - https://protectedseriesact.com/

 

  • California Enforcement of Judgments Law - Considers the topic of judgment enforcement in California, including the California Enforcement of Judgments Law and other laws related to California creditor-debtor issues - https://calejl.com/

 

  • Anti-SLAPP Laws - A collection of and commentary about Anti-SLAPP laws and significant court decisions on the subject within the United States - https://antislapplaws.com/

 

Available in 2019

 

Voidable Transactions: Fraudulent Transfers In Modern American Law, by Jay D. Adkisson

 

Click here for purchase information

© 2018 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 or by fax to 877-698-0678.