Topic Insolvency Voidable Transactions And Fraudulent Transfers

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

2019.09.13 ... The Sackler Family And Fraudulent Transfers

2019.08.21 ... Of Jeffrey Epstein And The Assets He Placed Into Trust Two Days Before His Death

2019.07.27 ... Cortez Rule For California Uniform Voidable Transactions Act Reaffirmed In Potter

2019.07.08 ... Fraudulent Transfers And The Statute of 13 Elizabeth Translated To Contemporary Legal English

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)

Click here to go to the Voidable Transactions Decision Chart

Overview of UVTA -- The process and result

Learn The Vocabulary Of The Act (Main Page)

Who are the parties? (Main Page)
Creditor - Debtor - Insider & Affiliate - Relative - Organization & Person
What is a Claim and Debt? - Establishes when the claim arose, and the amount of the claim
What is an Asset and Property? - Not all property are assets because certain categories of property are excluded
What is a Lien and a Valid Lien? - Liens also determine the value of assets
What is a Transfer and when has it occurred? - Not all movement of property are transfers
What is Value? - Value may have very different meanings to creditors and debtors
What does Insolvency mean? - Sometimes very difficult to determine

Has A Voidable Transaction Occurred? (Main Page)

Insolvency Test - The best test for creditors to use when available
Insider Preference Test - Not really a voidable transaction test, but instead a preferential transfer test
Anticipatory Insolvency a/k/a Inadequate Capitalization Test - The debtor knew or should have known that insolvency was near
Financial Weakness Test a/k/a Equity-Sense Insolvency Test - The debtor was not technically insolvent but close enough
Intent Test - The debtor intended to hinder, delay or defraud any creditor
Badges of Fraud - One of the most misunderstood subjects and frequently misapplied

Does The Transferee Have A Defense? (Main Page)

Extinguishment Periods a/k/a (incorrectly) Statute of Limitations - When UVTA actions cease to be viable
Transferee's Good Faith - How a transferee can avoid liability

What Remedies Are Available? (Main Page)

Non-Money Remedy (Avoidance, Injunction, Attachment, Levy, Receiver, Other) - The most common remedies which restore title to the asset in the debtor for purposes of the creditor's enforcement
Money Judgment - When the remedy of avoidance is unattractive

Other Helpful Provisions (Main Page)

Burdens of Proof - Who proves what and when
Conflicts-Of-Laws - When multiple jurisdictions' laws may apply and they differ
Applicability to Protected Series Organizations (Series LLCs) - Intra-series transfers may be voidable transactions
Uniformity Between States - When the courts of one jurisdiction should look at UVTA rulings in another
Supplementary Law - Resolving issues that are not covered by the UVTA
Electronic Signatures - An utter waste of statutory drafting
Title of the Act - Dumping fraudulent transfer for voidable transaction
Conforming Amendments - Information for enacting legislatures

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 - How insolvency is calculated

3 - Value - Issues relating to calculating value

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

(a)(1) {Intent Test} - To hinder, delay or defraud any creditor

(a)(2)(i) {Anticipatory Insolvency / Inadequate Capitalization Test} - Where the debtor is headed towards insolvency

(a)(2)(ii) {Financial Weakness / Equity-Sense Insolvency Test} - The debtor is not technically insolvent but close enough

(b) {Badges of Fraud} - Circumstances available to prove the debtor's intent

5 - Transfer or Obligation Voidable As To Present Creditor

(a) {Insolvency Test} - The test preferred by creditors

(b) {Insider Preference Test} - Not really a fraudulent transfer test at all

6 - When Transfer Is Made Or Obligation Is Incurred - Determines the time of the transfer

7 - Remedies Of Creditor

{Non-Money Judgment Remedies} - Avoidance, attachment, etc.

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

{Main Provisions} -The transferee's good faith for-value defense

(b) and (c) {Money Judgment Remedy} - Alternative remedy for creditors when avoidance is not good enough

9 - Extinguishment Of Claim For Relief - Similar to Statutes of Limitation

10 - Governing Law - Conflicts of Laws provisions

11 - Application To Series Organization - Applies to intra-series transfers

12 - Supplementary Provisions - Allows application of other law to issues unresolved by the UVTA

13 - Uniformity Of Application And Construction - Court opinions from other states may be looked to for guidance

14 - Relation To Electronic Signatures In Global And National Commerce - Waste of space

15 - Short Title - From fraudulent transfers to voidable transactions

16 - Repeals; Conforming Amendment - Information for enacting legislatures

OTHER SOURCES OF FRAUDULENT TRANSFER LAW

Fraudulent Transfers In Bankruptcy - Main Page

Bankruptcy Code Section 544 - Trustee as lien creditor and as successor to certain creditors and purchasers
Bankruptcy Code Section 548 -- Fraudulent Transfers And Obligations
Bankruptcy Code Section 550 -- Liability of Transferee of Fraudulent Transfer

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

DEFINITIONS

Creditor Definition - Court opinions on the definition of creditor

Debtor Insider Affiliate Relative Organization Person Definitions - Court opinions on the definitions of debtor, insider, etc.

Claim And Debt Definitions - Court opinions on the definitions of claim and debt

Asset And Property Definitions - Court opinions on the definitions of assets and property

Lien And Valid Lien Definitions - Court opinions on the definitions of lien and valid lien

Transfer Definition - Court opinions on the definition of transfer

Value And Reasonably Equivalent Value (REV) Definition - Court opinions on the definitions of value and reasonably equivalent value

Insolvency Definition - Court opinions on the definition of insolvency

TESTS

Insolvency Test - Court opinions relating to the Insolvency Test

Insider Preference Test - Court opinions relating to the Insider Preference Test

Anticipatory Insolvency / Inadequate Capitalization Test - Court opinions relating to the Anticipatory Insolvency Test

Financial Weakness / Equity-Sense Insolvency Test - Court opinions relating to the Financial Weakness Test

Intent Test - Court opinions relating to the Intent Test

Badges Of Fraud - Court opinions relating to the Badges of Fraud

DEFENSES

Extinguishment Periods a/k/a (incorrectly) Statute Of Limitations - Court opinions relating to the extinguishment periods

Transferee Good Faith - Court opinions relating to the transferee good faith for-value defense

REMEDIES

Non-Money Remedies - Court opinions relating to avoidance and other non-money remedies

Money Judgment Remedies - Court opinions relating to money judgments

OTHER

Burdens of Proof - Court opinions relating to the burdens of proof

Conflict Of Laws - Court opinions relating to conflict of laws

Uniformity - Court opinions relating to uniformity with the laws of other jurisdictions

Supplementary Law - Court opinions relating to the interplay of the UVTA with other law

BANKRUPTCY

Section 548 - Court opinions relating to 11 USC 548

OTHER RESOURCES

Decision Chart - How to resolve UVTA cases
Topical Court Opinions - Collection of interesting court opinions
Useful Articles and References - Other articles of interest
Jay Adkisson's Available Services - Stuff I do

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/

Asset Protection Book - The all-time best-selling book on asset protection planning by Jay Adkisson and Chris Riser - https://assetprotectionbook.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 2020

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

Click here for purchase information

© 2019 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.

Related websites:

Anti-SLAPP Laws at https://voidabletransactions.com/anti-slapp-laws.html

Charging Orders at https://voidabletransactions.com/charging-order.html

Captive Insurance Companies at https://voidabletransactions.com/captive-insurance.html

About Jay Adkisson at https://voidabletransactions.com/jay-adkisson.html