Non exempt property

Question 1

Intentionally fraudulent transfer

Answer 1

Made by the debtor with the intent to hinder, delay, defraud creditors, or without consideration, transferring it out state etc

The creditor bears the the burden of proving intent unless the the transfer is between spouses

If a married individual is indebted at the time of the transfer of property to a spouse, there is a presumption that the transfer was made with fraudulent intent.

(if property was transferred out of a tenancy of the entirety, it’s not fraud because the creditor could not reach it in the first place)

Question 2

Who can challenge an intentionally fraudulent transfer

Answer 2

All creditors can sue for intentional fraud

Question 3

Constructively fraudulent (when there is no evidence of fraud_

Answer 3

Element 1) The property is transferred for less than its its fair value; and
Element 2) At the time of transfer or as a result of the transfer the debtor becomes insolvent

Insolvency: if a debtor has insufficient property to pay all debts

Question 4

Who can challenge a constructively fraudulent transfer

Answer 4

Only current creditors can sue for constructive frauds

Question 5

Identify type of creditor

Answer 5

Current creditor- the claim existed at the time of the transfer and the claim was liquidated

Future creditor- The claim is acquired post transfer, or the claim existed at the time of the transfer but was unliquidated

Question 6

Defenses

Answer 6

If the transferee is a good faith purchaser who paid fair value
The transfer is perfected, regardless of wether the conveyance is intentionally or constructively fraudulent

If the transferee is a good faith purchaser who paid less than fair value
The property can be taken from them, but the purchaser is entitled to the amount they paid and in effect will have a lien on the property for that amount

Question 7

MISC

Answer 7

Creditors attack fraudulent transfers is a creditors bill
Preferential payments among creditors are not fraudulent transfers