Transfering assets & Accident lawsuit

What is the name of your state? New York

An elderly relative of mine was involved in a car accident where he passed out while driving & hit another car. He is afraid he will be sued by the person in the car e hit. Supposedly, he consulted with an attorney who told him that New York law allows you to transfer assets at any time before a lawsuit is filed against you & even once a lawsuit is filed but before its decided. Does anyone know if this is really true (and what statute says this)? It doesn't make sense to me since if true, I would think everyone would do it and there would be no point suing anyone in NY.

[JETX]

"Does anyone know if this is really true (and what statute says this)?"
*** Of course someone can transfer his assets to avoid paying his creditors or claims. And when caught, the courts will reverse what is called a 'fraudulent conveyance' and usually hit the person with additional sanctions and/or, depending on the full facts, possible attempted fraud charges.

fraudulent conveyance
n. the transfer (conveyance) of title to real property for the express purpose of putting it beyond the reach of a known creditor. In such a case the creditor may bring a lawsuit to void the transfer.

For more on the repercussions of this 'violation', go to: [url]http://www.fraudulenttransfers.com/[/url]

Originally Posted by JETX

"Does anyone know if this is really true (and what statute says this)?"
*** Of course someone can transfer his assets to avoid paying his creditors or claims. And when caught, the courts will reverse what is called a 'fraudulent conveyance' and usually hit the person with additional sanctions and/or, depending on the full facts, possible attempted fraud charges.

fraudulent conveyance
n. the transfer (conveyance) of title to real property for the express purpose of putting it beyond the reach of a known creditor. In such a case the creditor may bring a lawsuit to void the transfer.

For more on the repercussions of this 'violation', go to: [url]http://www.fraudulenttransfers.com/[/url]

Thanks very much. I didn't think this made any sense. I'm going to look at the NY law (linked to from the site you recommended) to see if there are any exceptions that might apply. From what I've read so far, it seems that since there has not been a claim threatened yet (its just suspected that there might be one), it might be possible to transfer some assets. However, if a claim is filed, it would certainly seem to be a fraudulent transfer to do so assuming the transfer would not leave enough assets to pay the claim.

As I mentioned in my original post, I was confused about this because my father (who was in the accident) talked to a NY attorney who told him that he could transfer title to his house even after a lawsuit was filed. Unless my father totally misunderstood, this seems pretty incompetent to me.

Again, thanks very much for the information.