What is a real fraudulent transfer?

A real fraudulent transfer is an action taken by a debtor that involves transferring assets out of their own name to another individual or entity for the purpose of avoiding payment to creditors. This fraudulent transfer could be done in a variety of ways. For example, it could involve transferring property to another party in exchange for a reduced or no payment of a debt, transferring assets to a relative or friend in an attempt to keep them out of the reach of creditors, or making a payment to an existing creditor with the intention of lessening the balance of the debt. In California, creditors have certain rights to protect them from fraudulent transfer activity. The California Uniform Fraudulent Transfer Act (UFTA) establishes the grounds for creditors to pursue recovery of assets if a fraudulent transfer is suspected. According to this law, the creditor must be able to prove that there was an actual intent to defraud, and that the transfer was made without receiving reasonably equivalent value in exchange. Furthermore, the creditor must also be able to demonstrate that the assets were transferred with the intent to prevent creditors from collecting the debt. It is important to note that one of the main requirements for a real fraudulent transfer in California is that the debtor must have had the intent to defraud creditors at the time the transfer was made. Without this intention, a transfer can not be legally considered fraudulent. As a result, creditors must be very careful when making accusations of fraudulent transfer activity in order to remain within the law.

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What is a real fraudulent transfer?

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