![]() ![]() ![]() Remedies and Statute of Limitations to Fraudulent Transfers Creditors may have grounds to pursue legal action so that they can return the assets and remedy the fraudulent activity. If the courts find that several of these factors are present, they may support that a transfer is fraudulent. The transfer occurred shortly after or before they incurred a substantial amount of debt The transfer included all of the debtor’s assets The debtor had been previously sued or threatened with a suit prior to the transfer The debtor kept possession of the asset after the transfer ![]() Whether the transfer was to an insider (i.e., a family member) Having proof of intentional fraud is often not enough to win a case of fraudulent conveyance.Ĭourts will consider a number of additional factors in determining fraudulent activities, such as: Intended to or believed they would incur debts beyond their ability to repay. Was engaged or about to engage in business or a transaction for which their remaining assets were unreasonably small and Made the transfer with an actual intent to hinder, delay, or defraud a judgment creditor ĭid not receive a reasonably equivalent value in exchange for the property transferred As we mentioned previously, these transfers can be voided under TUFTA.Īn asset transfer is fraudulent if the debtor: Also known as a fraudulent transfer, this occurs when there is an attempt to hinder, delay, or avoid a debt or judgment by transferring an asset to another entity or individual. What is a Fraudulent Conveyance?Īccording to the Texas Uniform Fraudulent Transfer Act (TUFTA), a “transfer” is defined as “every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset, and includes payment of money, release, lease, and creation of a lien or other encumbrance.” Texas permits a range of transfers, but certain ones can violate TUFTA’s laws, such as fraudulent conveyances. can help.ĭid someone who owes you money transfer assets or property to avoid a debt? Call (713) 909-7323 or contact us online to discuss your options. Our Houston business law attorneys at Hendershot Cowart P.C. It’s crucial for all creditors to have a basic understanding of their rights and remedies when a debtor engages in this type of fraudulent activity. However, these transactions are illegal under Texas law and can be voided when proven. Unfortunately, there are times when that person or entity may try to avoid debt by transferring property to a third party, putting the creditor at risk. Social Media Policies & Employee Trainingīusiness owners take on a great deal of responsibility every time they extend credit to a customer.Intellectual Property Protection on Social Media.Social Media Compliance for Regulated Businesses.Will OSHA Think I'm Guilty if I Hire a Lawyer?.Doing Business with a Client in Chapter 11.Concierge and Direct Primary Care Practices.Medicare Billing Privilege Revocations & Appeals.Corporate Practice of Medicine Doctrine.Intellectual Property & Trade Secret Protection.Confidentiality or Non-Disclosure Agreements. ![]()
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