What is the meaning of “fraudulent transfer”?

In Washington, “fraudulent transfer” is a legal term for when someone moves their assets (which include money and/or property) to another person, or entity, in order to avoid paying creditors. It can also include transferring assets with the aim of defrauding a creditor. A fraudulent transfer can be an intentional act, where someone knowingly transfers their assets with the intention of avoiding payment to creditors, or it can be done unknowingly. In Washington, the Uniform Fraudulent Transfer Act (UFTA) protects creditors by providing parameters for how a fraudulent transfer of assets can be avoided or reversed. The act prohibits transferring assets without receiving at least a “reasonably equivalent value” for them, and it makes it illegal to move assets with the intention of avoiding payment to creditors. In addition, the act allows creditors to seek repayment from the recipient of the fraudulent transfer or to place a lien on the transferred asset in order to cover the debt. This helps creditors ensure that they are not left out of pocket as a result of a fraudulent transfer. In summary, fraudulent transfer is a legal term in Washington that refers to a person transferring their assets in order to avoid paying creditors. The Uniform Fraudulent Transfer Act protects creditors by preventing these transfers and allowing them to seek repayment or a lien on the transferred assets.

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