Quickly Resolving Fraudulent Conveyance Claims And Litigation
Selling assets to another company is simply part of doing business in Georgia. While there is nothing intrinsically wrong with one business selling its assets to another business, it’s important to point out that this process can result in liability and costly litigation if handled improperly, specifically in debt situations.
The attorneys at Jones & Walden, LLC, have substantial experience pursuing and defending fraudulent transfer claims in Georgia. We have helped business owners as well as creditors in Atlanta and surrounding areas resolve disputes involving allegations of fraudulent transfer and avoid costly litigation that can wreak significant damage on business entities.
Understanding Fraudulent Conveyance
The essence of a fraudulent conveyance claim is that a debtor transferred his or her property to another party in an intentional attempt to frustrate a creditor’s collection attempts or simply without receiving something of reasonable value in exchange for the transfer. Fraudulent conveyance claims are asserted against the recipient of the property to extend liability beyond the original person or entity liable for the debt.
Fraudulent transfer claims are usually filed to recover assets to satisfy a judgment. For example, if a debtor transfers his or her home to a spouse either as an outright gift or in exchange for value worth much less than the property, a creditor can attack the conveyance as a fraudulent transfer (whether or not the individual intended to frustrate the creditor’s ability to collect). If the creditor prevails, it can ask the court to set aside the transfer, thereby returning the property to the debtor and subjecting it to the creditor’s judgment. The court may also award damages against the recipient for the value of the property received from the debtor.
Insiders In Fraudulent Conveyance Actions
Creditors often bring fraudulent conveyance actions against “insiders” of the debtor. For an individual debtor, insiders include the person’s spouse and other family members as well as business entities that the debtor owns or controls. For a corporate debtor, insiders include owners, officers and affiliated entities.
Jones & Walden, LLC, has litigated many fraudulent transfer cases involving unique and novel arguments in this evolving practice area.
Understanding The Law In Georgia
Fraudulent conveyance law is sometimes overlooked or underemphasized by even experienced practitioners.
In 2015, the Georgia Legislature amended the Georgia Uniform Fraudulent Transfers Act, and as of July 1, 2015, the statute is now known as the Uniform Voidable Transactions Act. The amendment included several changes, but the core of these actions remains the same.
Put Our Experience And Skill In Your Corner
The lawyers at Jones & Walden, LLC, have decades of combined experience litigating both sides of fraudulent transfer and voidable conveyance cases. The existence of possible fraudulent transfer claims significantly impacts a party’s position, both in and out of bankruptcy. For this reason alone, we strongly encourage you to seek legal advice at the earliest possible opportunity when these issues arise.
If you would like to discuss your case with a skilled attorney at our firm, we encourage you to contact our office in Atlanta to set up a consultation. We can explain your rights and options as well as walk you through the process of resolving matters at hand. Call 678-701-9235 or contact us online to get started.