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Is Your Debtor Illegally Hiding Assets?

The last thing debtors want is to lose their valuable assets to creditors. Many attempt to shield their assets by transferring them to spouses, family members or other insiders. This is illegal. At Joshua P. Friedman & Associates, Inc., we won’t let them get away with it. If your debtor attempted to hide assets through a fraudulent transfer, we will sue, and we will recover the assets.

What Is A Fraudulent Transfer?

In California, a transfer is fraudulent if it was made to prevent or hinder collection by a creditor or if the debtor did not receive fair market value.

For example, a fraudulent transfer occurs if your debtor gifted a property to a family member or “sold” property for less than it is worth. Common examples of fraudulent transfers include:

  • Transferring a house through a quitclaim deed
  • “Selling” a car to a friend for less than it is worth
  • Gifting a diamond ring to a family member

Our team thoroughly investigates our clients’ debtors. We trace assets, examine deeds and conduct judgment debtor examinations. If there is any indication that a fraudulent transfer took place, we will find out, we will get the asset back and we will collect your money.

The Warning Signs Of A Fraudulent Transfer

It’s crucial to remain vigilant about the warning signs that a debtor might be engaging in a fraudulent transfer. These red flags can help you act swiftly to protect your interests:

  1. Sudden transfer of assets: If a debtor suddenly transfers assets to family members or close associates without a reasonable explanation, this may be suspicious.
  2. Selling assets below market value: Debtors’ property of sale or other assets for much less than their market value could be trying to hide them from creditors.
  3. Insolvency after transfer: If a debtor becomes insolvent shortly after transferring assets, this might indicate a fraudulent transfer.
  4. Unusual or secretive transactions: Secretly or uncommon transactions may signal fraudulent intent.
  5. Retaining control over transferred assets: If a debtor continues to use or control assets after the transfer, it may suggest the transfer was not legitimate.

We can help you identify these signs. If you have additional questions about proceeding, call us at [NAP Phone].

The Legal Framework For Fraudulent Transfers In California

In California, the Uniform Voidable Transactions Act (UVTA), previously called the Uniform Fraudulent Transfer Act (UFTA), governs fraudulent transfers. This law considers transfers fraudulent if someone makes them with the intent to obstruct, postpone or cheat a creditor. Transfers can also be fraudulent if the debtor transferring the assets does not get something of equal value in return. Transfers can also be fraudulent if the debtor is insolvent during the transfer or becomes insolvent due to the transfer.

How Can A Fraudulent Transfer Lawsuit Help Me Collect My Money?

Attorney Joshua Friedman will file a fraudulent transfer lawsuit against your debtor and the person the asset was transferred to. Through this legal proceeding, he can:

  • Get an injunction
  • Have the asset transferred back to the creditor
  • Attach a lien to the asset so the transferee – the person now holding the asset – can’t sell or gift it to someone else
  • Levy, or foreclose, on the asset
  • Appoint a receiver to take charge of the asset

The result? You get the money you are owed.

Answers To Fraudulent Transfer FAQs

Many of our clients have these questions when they are looking to pursue legal action against a debtor’s fraudulent transfers:

Key signs can include:

  • Sudden asset transfers to family or close friends
  • Selling assets below market value
  • Claiming to have no money after a transfer
  • Conducting secretive transactions
  • Retaining control over transferred assets

These actions can indicate an attempt to hide assets from creditors.

According to the UVTA, a transfer is fraudulent in California if someone makes it with the intent to hinder, delay or defraud a creditor, or if the debtor doesn’t receive anything of equal value and is broke at the time or becomes broke because of the transfer.

To prove a fraudulent transfer, you must demonstrate the

  • Debtor’s intent to defraud creditors
  • Lack of fair value received in exchange for the asset
  • Debtor’s insolvency at the time of transfer

Evidence such as financial records, witness testimony and analysis from experienced professionals can be crucial in building your case.

In California, the statute of limitations for fraudulent transfer claims is four years from the date of the transfer. In cases of actual fraud, you have one year to act from the time you discovered or could have discovered the transfer.

While California law does not automatically grant attorney’s fees in fraudulent transfer cases, a creditor may recover legal fees if a contractual agreement or statutory provision allows such recovery.

If you suspect fraudulent transfers, it is crucial to consult with our attorneys at Joshua P. Friedman & Associates, Inc. They can investigate the situation and help you take the appropriate legal action to recover the assets. Prompt action can prevent further asset dissipation and improve your chances of recovery.

Protect Your Right To Repayment. Stop Fraudulent Transfers.

Is your debtor illegally transferring assets to keep them out of your reach? Fight back. Call us at 310-278-8600 or fill out our online contact form to schedule a consultation.

Our team of debt collection professionals in Los Angeles will stop fraudulent transfers, recover illegally transferred assets and get you what you are owed.