What is the Uniform Fraudulent Transfer Act (UFTA)?

The Uniform Fraudulent Transfer Act (UFTA) is a law designed to protect creditors from the fraudulent transfer of assets. This law is applicable in the District of Columbia and in many other states throughout the country. Essentially, the UFTA is designed to ensure that creditors are not taken advantage of by debtors attempting to protect their assets from creditors seeking repayment. Under the UFTA, any transfer of property or assets that has been made with the intent to defraud or hinder creditors is considered fraudulent and is void. This ensures that creditors are not taken advantage of when their debtors attempt to hide their assets. The UFTA also outlines certain exceptions to its rule. For example, it does not invalidate transfers that are out of the ordinary course of business, transfers made for reasonably equivalent value, or transfers made after a reasonable investigation into the creditor’s rights. Ultimately, the UFTA is intended to protect creditors from being taken advantage of, and it works hand-in-hand with other asset protection laws in the District of Columbia. This law provides creditors with a powerful tool for curbing fraudulent activity and protecting their rights.

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What is the Uniform Fraudulent Transfer Act (UFTA)?

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