What is the Uniform Fraudulent Transfer Act (UFTA)?
The Uniform Fraudulent Transfer Act (UFTA) is a set of laws that governs fraudulently transferring assets in Washington. It is a uniform law, meaning that it was created by a group of people and agreed upon by each individual state. UFTA is designed to protect debtors, who may be facing creditors in court, from having their assets taken away without their knowledge or consent. Specifically, the law prohibits debtors from moving assets out of their name, or transferring them to another person or entity, in order to avoid paying creditors. Under UFTA, all transfers made more than two years prior to the filing of a bankruptcy claim are deemed fraudulent and are subject to challenge. All transfers made within two years before filing for bankruptcy are also suspect and can be reversed if the court finds that the transfer was made with the intent to defraud creditors. UFTA also outlines multiple remedies for creditors who have been victims of fraudulent transfers. Depending on the specific case and circumstances, a creditor may be able to collect on the debt, set aside the transfer, or collect from the person who received the transfer. Ultimately, UFTA is intended to stop fraudulent transfers from happening in the first place by making it difficult to transfer assets without the permission of the state or creditors. By making it more difficult to transfer assets, UFTA is an important element of asset protection law in Washington.
Related FAQs
What is a self-settled trust?Are there any risks associated with asset protection planning?
How can I protect my assets from divorce?
How can I protect my assets from creditors?
What is a business entity?
What are self-settled trusts?
What is the difference between asset protection and asset management?
How can I protect my real estate assets?
Can an asset protection trust help me avoid probate?
What documents do I need to establish an asset protection trust?
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