Understanding the Uniform Fraudulent Transfer Act
Chicago attorneys pursue assets to hold unscrupulous debtors accountable
The Uniform Fraudulent Transfer Act (UFTA), adopted by Illinois, most other American states and the District of Columbia, protects creditors from the unscrupulous transfer of assets. In practical terms, it means that if you have a claim against another person, that debtor can’t divest himself of assets to frustrate your attempts to collect. At Schwartz & Kanyock, LLC in Chicago, our attorneys are authorities on UFTA. We have more than 50 years of combined litigation experience; much of which involves what to do before and after the judgment to turn a court order into actual cash. Our particular knowledge of procedure and substantive law allows us to take decisive steps to trace fraudulent transfers and attach assets to satisfy judgments.
What elements are necessary to prove a case for fraudulent transfer?
In states that have adopted UFTA, there are elements of a case an attorney must prove to unwind and transfer and claim assets to satisfy a debt. These elements may include:
- An claim exists now between a creditor and a debtor —The sums owed could be the result of a loan, unpaid compensation, a court judgment, and so on.
- The debtor transferred assets — The debtor gave something of value to a third-party recipient.
- Insider transfers— The recipient of the assets frequently has a close relationship to the debtor.
- Lack of fair consideration — The debtor did not get reasonably equivalent value in exchange for the transferred assets.
- Timing of the transfer — The person who transferred assets frequently was a debtor at the time of the transfer, or under the circumstances had anticipated owing money in the foreseeable future.
- Intent to frustrate collection of the debt — The totality of the circumstances show that the debtor made the transfer to frustrate collection of the debt.
The statute of limitations for actions under UFTA may varies from state to state. In Illinois, the statute of limitations is typically four years, although “insider preference” claims have a one-year statute of limitations.
Contact the legal authorities on fraudulent transfer litigation in Chicago
Fraudulent transfers can be traced and assets seized to satisfy debts. Let Schwartz & Kanyock, LLC help you locate the funds necessary to settle your claim or court judgment. Call us today at 312-436-1442 or contact our Chicago office today.