Fraudulent Conveyance Information
Fraudulent conveyances can involve sales, gifts, or other transfers of property made without fair consideration or in violation of creditor rights. Creditors may challenge these transfers through legal action to void the conveyance and recover assets. Courts examine factors such as timing, intent, the debtor’s financial condition, and whether the transaction was made for reasonably equivalent value to determine if a conveyance is fraudulent.
Florida Legal Definition
In Florida, fraudulent conveyances are governed by the Uniform Fraudulent Transfer Act (UFTA), codified in Florida Statutes Chapter 726. A transfer is considered fraudulent if it is made with actual intent to defraud creditors or without receiving reasonably equivalent value while the debtor is insolvent. Florida courts may set aside fraudulent transfers, impose liens, or take other remedies to protect creditor rights and ensure equitable recovery.
How It’s Used in Practice
Attorneys, creditors, and courts use fraudulent conveyance laws to challenge improper transfers of property. During bankruptcy, foreclosure, or debt collection proceedings, creditors may seek to void transfers that were designed to evade payment. Title professionals and lenders also review property histories to ensure that prior conveyances were legitimate and not subject to challenge. Proper documentation and fair transactions reduce the risk of a conveyance being deemed fraudulent.
Key Takeaways
- A Fraudulent Conveyance is a property transfer intended to hinder, delay, or defraud creditors.
- It includes sales, gifts, or transfers without fair consideration or with intent to evade debts.
- Florida law governs fraudulent conveyances under the Uniform Fraudulent Transfer Act (Chapter 726).
- Courts can void fraudulent transfers and provide remedies to protect creditor rights.
- Proper documentation, fair value, and transparency reduce the risk of a conveyance being deemed fraudulent.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron, Shea & Johnson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
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