Business Lawyers Blog
A “fraudulent,” or more accurately “voidable” transfer, is a transfer by a party (the “debtor”) of some interest in property with the goal or effect of preventing a creditor or creditors from reaching the transferred interest to satisfy their claim or claims.
What Law Governs “Fraudulent” or “Voidable” Conveyances/Transfers?
Fraudulent conveyances are governed primarily by the Uniform Voidable Transactions Act (UVTA), which replaced the Uniform Fraudulent Transfer Act (UFTA) in California as of January 1, 2016. The UVTA applies to transfers made or obligations incurred after January 1, 2016. The UFTA will continue to apply to transfers made or obligations incurred prior to January 1, 2016. One of the most noticeable changes made in the UVTA is the removal of the word “fraudulent” from the title and body of the act. This change emphasizes that a transfer may be, and often is, voidable even in the absence of any sort of improper intent by the debtor or the transferees.