![]() ![]() ![]() (a)(3)(C).) A transfer is not voidable against a person “who took in good faith and for a reasonably equivalent value or against any subsequent transferee.” (§ 3439.08, subd. “Section 3439.07, subdivision (a) sets forth creditors' remedies, which include avoidance of a transfer, attachment, and the equitable remedies of injunction and receivership as well as “ny other relief the circumstances may require.” (§ 3439.07, subd. ) “A transfer made … by a debtor is fraudulent as to a creditor, whether the creditor's claim arose before or after the transfer was made, if the debtor made the transfer as follows: (1) With actual intent to hinder, delay, or defraud any creditor of the debtor.” (§ 3439.04, subd. “A fraudulent conveyance under the UFTA involves “ ‘ a transfer by the debtor of property to a third person undertaken with the intent to prevent a creditor from reaching that interest to satisfy its claim.’ ” (Kirkeby v. The California Uniform Fraudulent Transfer Act allows a “ creditor” to cancel a transfer of property by a “ debtor”, where the transfer was made (a) to escape monetary “claims” of the “creditor” and (b) the transfer was made for consideration that was less than the “ reasonably equivalent value” of that property at the time. Thus, there may possibly be a potential benefit in proceeding promptly under the State law to collect the debt, hopefully well before any Bankruptcy proceeding might be filed by the debtor. § 548, but the state remedies can be preferable to the Bankruptcy provisions because, if a creditor can recover assets under the State law, that recovery can be used to pay the debts of that creditor, whereas a recovery by a Bankruptcy trustee under the Federal law is used to pay all unsecured creditors equally. Those state statutes are very similar to the Fraudulent Transfer provisions of the U.S. ![]() This can be done before, during and after a legal proceeding is started to collect the debt, whenever fraudulent transfers are discovered or reasonably suspected. In California, and in many other States, the Uniform Fraudulent Transfer Act may provide a remedy and protection for both business and personal creditors to set aside those fraudulent transfers and recover the property to pay the debt. What should a creditor do in those circumstances? In some instances a desperate or devious defendant or debtor will attempt to fraudulently conceal his, her or its assets by transferring them to a friend, relative, a related company or other cooperating third party, to try to look impecunious or judgement-proof, and avoid paying what is owed. ![]()
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