Fraudulent Transfers via Fraud in Fact

Fraudulent Transfers via Fraud in Fact

Section 5 of the Uniform Fraudulent Transfer Act states:

(a) A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor’s claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation:

(1) with actual intent to hinder, delay, or defraud any creditor of the debtor; or
(2) without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor:
      (A) was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction; or
      (B) intended to incur, or believed or reasonably should have believed that he would incur, debts beyond his ability to pay as they became due.

(b) In determining actual intent under paragraph (1) of subsection (a),consideration may be given, among other factors, to whether:
(1) the transfer or obligation was to an insider;
(2) the debtor retained possession or control of the property transferred after the transfer;
(3) the transfer or obligation was disclosed or concealed;
(4) before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit;
(5) the transfer was of substantially all the debtor’s assets;
(6) the debtor absconded;
(7) the debtor removed or concealed assets;
(8) the value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred;
(9) the debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred;
(10) the transfer occurred shortly before or shortly after a substantial debt was incurred; and
(11) the debtor transferred the essential assets of the business to a lienor who transferred the assets to an insider of the debtor.

EXPLANATIONS:
(1) Do not transfer assets after a lawsuit. Creditors have (4) years after UCC-1 filing to learn, by their own volition, of the filing. After such time has passed the transfer stands despite any creditor's future scrutiny or claims.
(2) Control of an asset is given to a trust in one's personal capacity, the trustee controls it in a separate role with a Board of Trustees, having a minimum of 33% control or less.
(3) A UCC-1 is perfected (filed with Secretary of State), thus publicly known.
(4) DO NOT TRANSFER ASSETS ONCE SERVICE OF PROCESS HAS OCCURED
(5) A Private Security Agreement for goods, services, consulting and Capital Interest Certificates are an equal exchange - even if most of one's assets. Do not lien via a UCC-1 on the debtor for more assets than they currently hold, at least not too much more.
(6) Do not run. Subject matter jurisdiction must always be proven and can be challenged at any time, even after a judgement.
(7) N/A - THIS IS A CASE BY CASE DETERMINATION FOR ALL COURTS
(8) Via the creditor's delivery of goods, services, consulting  and Capital Interest Certificates are an equal exchange.
(9) There must be a (1) year waiting period before an action should occur (bankruptcy or further indebtedness), lest there be a suspicion that the transfer was fraudulent.
(10) SEE (9)
(11) A trust is a sui juris (independent) entity with multiple trustees, thus passing the "smell test."
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