By Fredrick P. Niemann, Esq. a New Jersey Fraudulent Transfer Attorney
There are two kinds of fraudulent transfers. The standard example is an intentional fraudulent transfer. By this I mean a transfer of property made by a debtor with intent to defraud, hinder, or delay his or her creditors. The second is a constructive fraudulent transfer. Generally, this occurs when a debtor transfers property without receiving “reasonably equivalent value” in exchange for the transfer if the debtor is insolvent at the time of the transfer or becomes insolvent or is left with unreasonably small capital to continue in business as a result of the transfer. Unlike the intentional fraudulent transfer, no intention to defraud is necessary.
In bankruptcy, the Bankruptcy Code authorizes a bankruptcy trustee to recover the property transferred fraudulently for the benefit of all of the creditors of the debtor if the transfer took place within the relevant time frame. The transfer may also be recovered by a bankruptcy trustee under the UFTA too, if the state in which the transfer took place has adopted it (New Jersey has adopted the UFTA) and the transfer took place within its relevant time period. If you are a creditor, you may also pursue remedies in Superior Court under the UFTA without the necessity of forcing bankruptcy.
Contact me personally today to discuss your fraudulent transfer matter. I am easy to talk to, very approachable and can offer you practical, legal ways to handle your concerns. You can reach me toll free at (855) 376-5291 or e-mail me at fniemann@hnlawfirm.com/.