Debtor paid for the air tickets to her husband

[mayojones]

What is the name of your state? Texas
I am judgment creditor. When I verified the financial transactions of the debtor (she), she bought air tickets for her husband’s journey to a country in Asia few times (each time he spent few weeks in that country). Her husband has almost no income. Debtor testified that she bought the air tickets for her husband because her husband visited the other country based on her request to take care of her parents (on her behalf) living in that country and to physically perform some required religious ceremonies on her behalf in that country. It seems to me that he visited to meet his own parents living in that country but I have no solid proof. Will this air ticket payment comes under fraudulent transfers? Texas fraudulent transfer law is: https://statutes.capitol.texas.gov/Docs/BC/htm/BC.24.htm

 

[adjusterjack]

Will this air ticket payment comes under fraudulent transfers?

No.

Her husband has almost no income.

She supports him.

Doesn't matter if he was visiting her parents or his parents.

She could have bought him seasons tickets to the Astros, or a new car, and it wouldn't be a fraudulent transfer.

And, last but not least.

I have no solid proof

Also isn't likely to matter. Any money spent in support of her husband is likely legit.

Judgments in Texas are often uncollectible.

Unlimited homestead protection. Liens on homes are prohibited. Wage garnishment prohibited. Levying personal property is time consuming and expensive. You pay fees and cost up front, expenses before and during the sale, with no guarantee that the property is going to realize enough money.

We had another Texas poster here recently, in the same boat.

 

[zddoodah]

Will this air ticket payment comes under fraudulent transfers?

No.

A fraudulent transfer is a transaction in which transferor does not receive reasonable value in return. Do you have reason to believe the debtor overpaid for the airline tickets?

 

[zddoodah]

the Astros . . . be . . . fraudulent

I couldn't agree more.

 

[mayojones]

Thanks a bunch. Zddoodah said "A fraudulent transfer is a transaction in which transferor does not receive reasonable value in return" and I agree but, what "reasonable value" the debtor has received in return of paying for debtor's husband's air tickets? how the debtor can show or prove this "reasonable value" ?

 

[Zigner]

Thanks a bunch. Zddoodah said "A fraudulent transfer is a transaction in which transferor does not receive reasonable value in return" and I agree but, what "reasonable value" the debtor has received in return of paying for debtor's husband's air tickets? how the debtor can show or prove this "reasonable value" ?

Read the response before his as well.

 

[not2cleverRed]

Thanks a bunch. Zddoodah said "A fraudulent transfer is a transaction in which transferor does not receive reasonable value in return" and I agree but, what "reasonable value" the debtor has received in return of paying for debtor's husband's air tickets? how the debtor can show or prove this "reasonable value" ?

She wasn't paying for a lavish vacation.

Her in-laws are relatives.

You will get little sympathy from anyone who has even the vaguest of experience with the care of aging parents.

I could see your point if she was paying for a leisure trip that involved no visits to older relatives.

 

[zddoodah]

Zddoodah said "A fraudulent transfer is a transaction in which transferor does not receive reasonable value in return" and I agree but, what "reasonable value" the debtor has received in return of paying for debtor's husband's air tickets?

The debtor gave money in exchange for airline tickets. That's the reasonable value that was received in exchange for the money. If the tickets were for a trip that hadn't yet been taken, then you, as the creditor, could, in theory, sue the husband to obtain the tickets. However, they don't exist anymore because the trips have been taken. Imagine if, instead of buying airline tickets, the debtor had bought $10,000 worth of cocaine that she gave to her husband's rock band, and which they snorted over the course of a month spent recording a new album. What are you going to go after, and whom are you going to sue? The drug dealer? Nope. That was a transaction for reasonable value. The husband and his band? Nope, because they owed you nothing, and the goods purchased have been used. If the money had been spent on, e.g., a car that was titled in the husband's name, then you could go after that, but that's not what happened.

She wasn't paying for a lavish vacation.

. . .

I could see your point if she was paying for a leisure trip that involved no visits to older relatives.

It doesn't matter if it was a duty trip or a lavish vacation (or a speaker box full of cocaine).

 

[adjusterjack]

how the debtor can show or prove this "reasonable value" ?

She doesn't have to.

The burden is on you to present evidence that she did not obtain reasonable value.

Then it's her turn to refute your evidence or say nothing and allow the judge to rule on your evidence or lack thereof.

It would be useful to know how this debt happened and how much money is involved.

It doesn't matter if it was a duty trip or a lavish vacation

I started writing that.

Not the cocaine part, but that's true, too.

 

[Zigner]

Imagine if, instead of buying airline tickets, the debtor had bought $10,000 worth of cocaine that she gave to her husband's rock band, and which they snorted over the course of a month spent recording a new album.

Wait...
Rockers do drugs?

 

[mayojones]

So many thanks. Once more thing I forgot is that the debtor (she) bought air tickets by using funds from her personal her bank account to her grownup son also, to go to Asia. The son has been living in his own home in a different city (than where the debtor lives) and has his own income. Debtor Mom said that she paid his air tickets because he went to Asia based on her request to help her parents, to settle some financial matters, and to bring back some special spices and her personal material she has left over there in that country, and that he completed those tasks. Will the payment of her son’s tickets come under fraudulent transfer?

 

[cbg]

No.

 

[PayrollHRGuy]

Will the payment of her son’s tickets come under fraudulent transfer?

No. But to give you an example of a fraudulent transfer would be if she handed the cash over to her son and said hold the for me.

 

[Litigator22]

No. But to give you an example of a fraudulent transfer would be if she handed the cash over to her son and said hold the for me. (?)

Perhaps so. However only if the transfer of cash to her son was made with the intent (actual or constructive) to prevent it from being available for the satisfaction of the legitimate claims of her creditors; and, MOREOVER, the transaction rendered her insolvent or judgment proof.

Otherwise, entrusting money to her son would have more legal significance than where she to deposit the cash in a bank to be held to her credit!

 

[adjusterjack]

Mayojones, why can't you locate and levy her bank account?

If you can't, she can spend her money on anything and everything for which she receives value in return and thumb her nose at you with impunity.

Here's the other person who wants to enforce a judgment in Texas.

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