Fraudulent Transfer Law

Fraudulent Transfer Law in California

One of the pitfalls of business are the numerous ways in which companies may try to commit fraud against one another. One such way that this occurs is through a fraudulent transfer. In order to keep creditors from seizing certain assets, someone may put money away into an account under someone else's name, or a company may sell assets when they are insolvent. According to the Uniform Fraudulent Transfers Act (UFTA), actual fraud involves the "actual intent to hinder, delay, or defraud any creditor of the debtor". Constructive fraud may involve wrongful intent, misrepresentation, or more. In the event of a fraudulent transfer, a U.S. trustee and the creditor can void this transfer, and the debtor's assets can be seized by the creditor. In order to avoid inadvertent fraud and to protect your rights, it is important to understand this law. If you consult an experienced business litigation attorney, then you protect yourself from this disastrous misstep.

Bankruptcy and Fraudulent Transfers

There are a number of ways someone may try to keep assets out of the hand of a creditor. If this fraud is detected, then one's debt may encounter serious obstacles when seeking a discharge in bankruptcy. When a business is filing for bankruptcy, then that business is insolvent, obviously. If that business sold assets at the time they were insolvent, however, then that could be deemed as fraudulent. A transfer that plunges a business into insolvency, can also be deemed as a fraudulent transfer. In order to determine whether or not fraud was committed, a court and attorneys will examine the intent of the debtor and the finances at the time of the transaction.

That being said, there are some properties and assets that are exempted. What this means is that under Bankruptcy Code, these exemptions cannot be counted against you. If you are currently under investigation for fraudulent transfer, a business litigation attorney can look at your case and determine whether a fraudulent transfer case against you has any chance of success. Before you make any transfers, and certainly before you face creditors and their attorneys, it would be invaluable to your company to consult a business lawyer. With legal counsel, you can ensure that you do not fall into the ruinous consequences of a fraudulent transfer.

Los Angeles Business Litigation Attorney on Your Side

Whether you are concerned about staying out of debt after a transfer, or you are already being scrutinized for fraud, we at The Mirkhan Law Firm are committed to getting just results for our clients. This is one further way that we can help business to make the right moves. When working with The Mirkhan Law Firm, you can know you are getting trusted legal counsel. For more than a decade, we have been providing outstanding service, and our commitment and skill have paid off. We have an approximately 92% success rate, and this includes the cases that were considered "unwinnable". Our ability and commitment to ethical standards hold up even when we have faced Fortune 500 companies—and come away with positive results. Just as important, our founding attorney has earned the Most Patient Advocate and Commitment to Clients awards. When you need personable service and legal acumen, you can find both at our firm. To learn more about what we can do for you, we offer a case evaluation that you can fill out online. Do not hesitate to contact The Mirkhan Law Firm immediately.