In most states, the primary tools for addressing debtors’ transfers are adopted versions of a “model act” known as the Uniform Fraudulent Transfer Act (UFTA) or its new version, the Uniform Voidable Transactions Act (UVTA). Section 550 deals with the transferee’s defenses, with some language that speaks to the limitations of fraudulent transfer actions in bankruptcies. Section 548 of the United States Bankruptcy Code establishes the fundamental law of fraudulent transfers in bankruptcy. A common complication of debtor/creditor relations in bankruptcy, a fraudulent conveyance or fraudulent transfer is an attempt to prevent creditors from reaching a debtor’s assets by transferring them to a third party. “Fraudulent conveyance” is a centuries-old term that has been in the news recently because of its prominence in high-profile bankruptcy cases. Fraudulent conveyance laws can provide remedies for creditors, but their details vary by jurisdiction.The Bankruptcy Code and most state laws recognize two types of fraudulent transfers: actual fraud and constructive fraud.In state law, the common tool for addressing debtors’ transfers is the Uniform Fraudulent Transfer Act (UFTA) or its new version, the Uniform Voidable Transactions Act (UVTA).The US Bankruptcy Code and state law both regulate fraudulent transfers and provide remedies for creditors.A fraudulent conveyance or fraudulent transfer is an attempt to prevent creditors from reaching a debtor’s assets by transferring them to a third party. State laws dealing with asset transfers concerning bankruptcy are getting a closer look because of a new version of the Uniform Fraudulent Transfer Act
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