When someone owes money and moves assets out of reach, like transferring property to a relative or selling something for far less than it’s worth, it can raise legal red flags known as fraudulent transfers. These cases are governed by both state law (UFTA/UVTA) and federal bankruptcy law (Section 548 of the Bankruptcy Code). Whether you’re a creditor trying to recover what’s owed or a debtor trying to protect your rights, it’s important to understand how these laws work together.
At The Law Office of Christopher G. Frey, we help clients on both sides navigate these complex issues, fairly, strategically, and effectively.
What Counts as a Fraudulent Transfer?
There are two main types:
- Actual Fraud – When a debtor intentionally moves assets to avoid paying creditors.
- Example: Transferring a car title to a family member right before a judgment is entered.
- Constructive Fraud – When a transfer happens for less than fair value while the person was already in financial trouble.
- Example: Selling property for far below market value while behind on debts.
Even without bad intent, these transfers can sometimes be reversed or “voided” by a court.
How the Laws Work
- State Law (UFTA/UVTA): Most states allow creditors up to four years to challenge a transfer.
- Federal Law (Bankruptcy Code Section 548): In bankruptcy, a trustee can look back two years before filing to undo transfers that unfairly reduced the bankruptcy estate.
Each law has its own deadlines, rules, and remedies, which is why professional legal guidance is critical.
If You’re a Creditor
Fraudulent transfers can make collecting a debt feel impossible, but you still have options. Our firm can help you:
- Investigate suspicious transfers,
- File claims to reverse improper transactions, and
- Recover assets or their value through court action or bankruptcy proceedings.
If You’re a Debtor
Not every transfer is fraudulent. Many are legitimate, such as paying a bill, repaying a family loan, or restructuring finances before bankruptcy. We can help you:
- Prove your transfers were made in good faith,
- Assert legal defenses under state and federal law, and
- Protect your rights and property during financial hardship or bankruptcy.
Why Choose The Law Office of Christopher G. Frey
We understand both sides of debt and recovery. Whether you’re pursuing payment or defending your financial stability, we’ll explain your options clearly and guide you through every step.
Our experience spans state courts, federal bankruptcy courts, and post-judgment recovery, giving us the insight to anticipate challenges and build strong strategies for our clients.
Talk to an Experienced Attorney
If you suspect a fraudulent transfer, or if you’ve been accused of making one, don’t wait. These cases have strict deadlines, and early action can make all the difference.
Contact The Law Office of Christopher G. Frey today for a confidential consultation. We’ll help you understand your rights, protect your interests, and move toward the best possible resolution.
The information provided on this page is for informational purposes only and does not constitute legal advice or create an attorney-client relationship. Please contact a licensed bankruptcy attorney to determine what exemptions apply in your case.