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The Uniform Fraudulent Conveyances Act is a law created in 1918 to address situations where people who are unable to pay their debts try to transfer their assets to someone else to avoid paying their creditors. The law distinguishes between actions that are automatically considered fraudulent and those that require proof of intent to deceive.
The Uniform Fraudulent Conveyances Act is a law created in 1918 to address situations where people who are unable to pay their debts try to transfer their assets to someone else in order to avoid having to pay their creditors. This is called a fraudulent conveyance.
The act distinguishes between two types of fraudulent conduct:
For example, if someone who owes a lot of money to their creditors gives away all of their valuable possessions to a friend or family member for no reason, that transfer would be considered a presumed fraudulent conveyance. On the other hand, if someone sells their car to a friend for less than it is worth in order to avoid having to use the money to pay their debts, that transfer would require proof that the person intended to defraud their creditors.
The Uniform Fraudulent Conveyances Act helps protect creditors by making it more difficult for debtors to transfer their assets in an attempt to avoid paying their debts.
Uniform Enforcement of Foreign Judgments Act | Uniform Fraudulent Transfer Act