What is the Uniform Fraudulent Transfer Act (UFTA)?
The Uniform Fraudulent Transfer Act (UFTA) is a set of laws that protect assets from being fraudulently transferred in order to avoid creditors seeking repayment of debt. The act is implemented in all states, however, the specifics of the law may differ from state to state. In New York, the UFTA prevents debtors from transferring their assets out of the state with the intention of avoiding creditors. The UFTA requires all debtors to provide notice to their creditors of any act that could potentially defraud them. The law makes it so assets cannot be sold for less than they are worth, or transferred without court permission. Under UFTA, creditors must file a claim in court to begin the process of recovering a debtor’s assets in order to satisfy a debt. UFTA also protects creditors from debtors who might be trying to use fraudulent means to pay off debt, including partial payments, transfers of assets to third parties, and the creation of false documents. The penalties for violating UFTA can be quite severe, including both civil and criminal penalties. In summary, the Uniform Fraudulent Transfer Act (UFTA) is a set of laws designed to protect both debtors and creditors from fraudulent transfers of assets that are intended to avoid obligations to creditors. In New York, UFTA provides protection for creditors and debtors from any fraudulent attempts to transfer assets in avoidance of creditors.
Related FAQs
What is the difference between an offshore trust and a domestic trust?What is the difference between asset protection and estate planning?
What are "charging orders" in asset protection law?
What is a limited liability company (LLC)?
How do I select a trustee for an asset protection trust?
What is an offshore asset protection trust?
What types of asset protection trusts are available?
Are there any risks associated with asset protection planning?
Can I use an asset protection trust to protect my IRA or 401(k)?
What is the role of a trust protector?
Related Blog Posts
Asset Protection Strategies: What You Need to Know about Asset Protection Law - July 31, 2023Securing Your Property with Asset Protection Law: 7 Essential Tips - August 7, 2023
Protect Yourself and Your Assets: Asset Protection Planning for Small Business Owners - August 14, 2023
Safeguarding Your Business Assets with Asset Protection Law - August 21, 2023
Maximizing Your Asset Protection Plan with an Experienced Attorney - August 28, 2023