Creditor's Rights

Question 1

Transfers Between Indebted Husbands & Wives

Answer 1

a. Presumed to be fraudulent and are voidable at the suit of either existing or future creditors.

b. A gift conveyance, assignment, or transfer made with the actual intent to hinder, delay, or defraud creditors is considered fraudulent.

c. The presumption of fraudulent intent can be rebutted if they show that consideration was given for the transfer or that the transfer was a bona fide gift.

Question 2

When can a conveyance be avoided for the benefit of a creditor?

Answer 2

A conveyance or transfer may be avoided for the benefit of any creditor unless the conveyance is made to a bona fide purchaser who pays a fair consideration without notice or knowledge of the fraudulent intent of the grantor.

Question 3

When can a tenancy by entirety be used to satisfy husband & wife’s debts?

Answer 3

Property held as tenancy by the entirety can only be used to satisfy the joint debts of the husband and wife. An individual spouses debt cannot be enforced against property held as tenancy by the entirety.