What are the Uniform Fraudulent Transfer Act (UFTA) and the Uniform Fraudulent Conveyance Act (UFCA)?
The Uniform Fraudulent Conveyance Act (UFCA) and the Uniform Fraudulent Transfer Act (UFTA) are statutes enacted in various states that allow creditors or in some cases bankruptcy trustees to avoid certain transfers or transactions of a debtor and recover money or property that was conveyed beyond the creditors’ reach. A fraudulent transfer (or conveyance) occurs when a debtor transfers property with either the actual intent to hinder, delay or defraud a present or future creditor or when the debtor’s transfer is for less than fair (or reasonably equivalent) value and the debtor is insolvent or rendered insolvent by the transfer.
