Question 1

What is a voidable transfer under Florida creditor rights?

Accepted Answer

Voidable transfer (formerly "fraudulent transfer"): a transfer of property made with the intent to: hinder, delay, or defraud creditors. FL: the Uniform Voidable Transactions Act (UVTA: Chapter 726: formerly the Uniform Fraudulent Transfer Act) governs. Two types: actual fraud (Section 726.105(1)(a): the debtor made the transfer with actual intent to defraud), and constructive fraud (Section 726.105(1)(b) and 726.106: the debtor received less than reasonably equivalent value and was insolvent at the time of the transfer or became insolvent as a result). The creditor: can sue to avoid the transfer and recover the property or its value.

Question 2

What are the badges of fraud for voidable transfers in Florida?

Accepted Answer

Badges of fraud (Section 726.105(2)): FL courts consider: transfer to an insider (family member, business partner, or related entity), debtor retained possession (the debtor continued to use the property after the transfer), concealment (the transfer was hidden or not disclosed), pending litigation (the transfer occurred while a lawsuit was pending or threatened), substantially all assets (the debtor transferred most or all of their assets), absconded (the debtor fled or disappeared after the transfer), inadequate consideration (the debtor received less than the property’s value), and insolvency (the debtor was insolvent at the time or became insolvent). No single badge: is conclusive (the court considers the totality of the circumstances).

Question 3

What remedies do Florida creditors have for voidable transfers?

Accepted Answer

Remedies (Section 726.108): avoidance (the court avoids the transfer: the property is returned to the debtor’s estate or the creditor can execute against it), judgment (the creditor obtains a judgment against the transferee: for the value of the property transferred), attachment (the court can attach the transferred property: preventing further transfer), injunction (the court can enjoin: the debtor from making additional transfers), and receiver (the court can appoint a receiver to manage the transferred property). Statute of limitations: 4 years for actual fraud (Section 726.110(1)), 4 years for constructive fraud (Section 726.110(2)), and extinguishment after 4 years from the transfer date. Good faith transferee: a transferee who takes in good faith and for reasonably equivalent value is protected.

Voidable Transfer Creditor Rights

Voidable Transfers and FL Creditor Rights

Types

Badges of Fraud

Remedies

Related Terms

Barnes Walker Litigation

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