California Uniform Fraudulent
Transfer Act
The Uniform Fraudulent Transfer Act
was adopted in California for all transfers and
obligations occurring on or after January 1, 1987,
providing unsecured creditors remedies against debtors
who have made transfers and incurred obligations that
have the effect of placing assets beyond the reach of
the creditors.
The court will use all relevant
evidence to determine if there has been a fraudulent
transfer including:
1. "the transfer was to an insider"
2. "the debtor had retained possession
or control of the property transferred,"
3. "the transfer or obligation was
disclosed or concealed,"
4. "the debtor was sued or threatened
with suit before the transfer was made or the obligation
incurred,"
5. "the transfer was of substantially
all the debtor’s assets,"
6. "the debtor has absconded,"
7. "the debtor had removed or
concealed assets,"
8. "the value of consideration
received by the debtor was reasonably equivalent to the
value of the asset transferred or the amount of the
obligation incurred,"
9. "the debtor was insolvent or became
insolvent shortly after the transfer was made or the
obligation incurred,"
10. "the transfer had occurred shortly
before or shortly after a substantial debt was
incurred," or
11. "the debtor had transferred the
essential assets of the business to a lien or who had
transferred the assets to an insider of the debtor."
[Cal. Civ. Code § 3439.04]
NOTE: California provides both civil
and criminal penalties against a debtor who fraudulently
moves property out of the state with the intent to
defraud that can range up to $1,000 or 1-year
imprisonment or both. [Cal. Penal Code § 154(a)] If the
property transferred is greater than $100 then the crime
is a felony. [Cal. Penal Code § 154(b)]
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