Fraudulent(Voidable) Transfer

[MassEffectPower]

What is the name of your state? UT.

What would happen if a company transferred tons of assets without paying fair market value then the company dissolved.

Then later it was deem to be a fraudulent(voidable) transfer?

What would be the result from such an action?

 

[adjusterjack]

Depends on the details. Of which you have provided none.

What kind of company?
What kind of assets?
Who did what?
How much money is involved?
Who or what "deemed" it to be fraudulent?
Who is bringing the action?
What is that person's standing to bring?
How much money does that person have with which to hire attorneys to pursue the action?

 

[zddoodah]

What would happen if a company transferred tons of assets without paying fair market value then the company dissolved.

Any number of thousands of things could happen. What would happen is impossible to predict in the abstract (i.e., without virtually not relevant facts).

Then later it was deem to be a fraudulent(voidable) transfer?

Deemed by whom?

 

[MassEffectPower]

Any number of thousands of things could happen. What would happen is impossible to predict in the abstract (i.e., without virtually not relevant facts).



Deemed by whom?

Deemed by a Judge or Jury. The court system.

So if a fraudulent transfer has occurred, the outcome could be 1,000s of different things?

Ranging from forcing the company to pay fair market value for what was taken to reversing the transaction that took place and everything in between?

There is no set outcome when something like this happens is what you are saying?

 

[Just Blue]

Deemed by a Judge or Jury. The court system.

So if a fraudulent transfer has occurred, the outcome could be 1,000s of different things?

Ranging from forcing the company to pay fair market value for what was taken to reversing the transaction that took place and everything in between?

There is no set outcome when something like this happens is what you are saying?

Answer Jacks questions in post 2. Thank you.

 

[zddoodah]

So if a fraudulent transfer has occurred, the outcome could be 1,000s of different things?

That's not what I wrote. You asked, "[w]hat would happen if a company transferred tons of assets without paying fair market value then the company dissolved." Even if you intended to write "receiving" instead of "paying,"** what you've described isn't necessarily a fraudulent transfer. Your question is also phenomenally vague, as the questions "adjusterjack" asked indicate. What sort of assets? What does "tons" mean? How many tons? Are we talking about two tons of fill dirt? Ten tons of potatoes? Or were you using "tons" colloquially to mean "a lot of"?

** - Rather obviously, the company would not "transfer[] tons of assets" and pay to do so (unless, perhaps it's disposing of toxic waste or something like that).

Deemed by a Judge or Jury. The court system.

Ok. This raises a bunch more questions. Who sued and for what?

There is no set outcome when something like this happens is what you are saying?

Yes. Outcomes depend on facts. You've provided no facts.

Ranging from forcing the company to pay fair market value for what was taken to reversing the transaction that took place and everything in between?

What you seem not to understand is that it's not illegal for someone to sell something for less than fair market value.

 

[MassEffectPower]

That's not what I wrote. You asked, "[w]hat would happen if a company transferred tons of assets without paying fair market value then the company dissolved." Even if you intended to write "receiving" instead of "paying,"** what you've described isn't necessarily a fraudulent transfer. Your question is also phenomenally vague, as the questions "adjusterjack" asked indicate. What sort of assets? What does "tons" mean? How many tons? Are we talking about two tons of fill dirt? Ten tons of potatoes? Or were you using "tons" colloquially to mean "a lot of"?

** - Rather obviously, the company would not "transfer[] tons of assets" and pay to do so (unless, perhaps it's disposing of toxic waste or something like that).




Ok. This raises a bunch more questions. Who sued and for what?




Yes. Outcomes depend on facts. You've provided no facts.




What you seem not to understand is that it's not illegal for someone to sell something for less than fair market value.

Who said it was illegal? I never said it was illegal. I said it was a fraudulent transfer which is a legal term.

The legal term is also known as voidable transfer( probably because people got confused about it being illegal)

When did I say it was illegal? Why do you think that I think its illegal?

I searched the term " illegal " on this post and your post is the first one which said the word " illegal" it was never said in any of my post .

"A fraudulent conveyance, or fraudulent transfer, is an attempt to avoid debt by transferring money to another person or company. It is generally a civil, not a criminal matter, meaning that one cannot go to jail for it, but in some jurisdictions there is potential for criminal prosecution.[1]"

https://en.wikipedia.org/wiki/Fraudulent_conveyance#:~:text=A fraudulent conveyance, or fraudulent,is potential for criminal prosecution.

The original company owes me money. What difference does it make why?

One company transferred its assets without receiving fair market value.
Another company received assets with paying fair market value .

Lots of value was received with very little to no compensation.

Question is what happens when fraudulent/voidable transfer is successfully proven in court. That is the outcome?

 

[Just Blue]

Who said it was illegal? I never said it was illegal. I said it was a fraudulent transfer which is a legal term.

The legal term is also known as voidable transfer( probably because people got confused about it being illegal)

When did I say it was illegal? Why do you think that I think its illegal?

I searched the term " illegal " on this post and your post is the first one which said the word " illegal" it was never said in any of my post .

"A fraudulent conveyance, or fraudulent transfer, is an attempt to avoid debt by transferring money to another person or company. It is generally a civil, not a criminal matter, meaning that one cannot go to jail for it, but in some jurisdictions there is potential for criminal prosecution.[1]"

https://en.wikipedia.org/wiki/Fraudulent_conveyance#:~:text=A fraudulent conveyance, or fraudulent,is potential for criminal prosecution.

The original company owes me money. What difference does it make why?

One company transferred its assets without receiving fair market value.
Another company received assets with paying fair market value .

Lots of value was received with very little to no compensation.

Question is what happens when fraudulent/voidable transfer is successfully proven in court. That is the outcome?

sigh...once again. Please answer Adjusterjacks' questions in post #2.

 

[Zigner]

<high pitched whine>

You would be better served by hiring an attorney to represent your interests.

 

[zddoodah]

The original company owes me money. What difference does it make why?

One company transferred its assets without receiving fair market value.
Another company received assets with paying fair market value .

Lots of value was received with very little to no compensation.

Question is what happens when fraudulent/voidable transfer is successfully proven in court. That is the outcome?

OK. Against my better judgment, I'll create a hypothetical.

Let's say Dave owns a two classic cars in addition to his regular car. The classic cars are worth $25k each. Dave also owes money to John because John painted Dave's house. Dave doesn't have the money to pay John and doesn't want to sell either of his cars to get the money. Dave transfers title in the cars to his friend Susan in exchange for $100 per car. Now, if John sues Dave and gets a judgment, he can't execute that judgment against the cars. John could, potentially, sue Susan (in addition to suing John), alleging that the transfers of the vehicles were fraudulent transfers. If John can prove this case, then the court might order the transfers to be undone so that John can execute his judgment against the cars.

If you don't like my hypothetical, then provide some facts.

 

[quincy]

Who said it was illegal? I never said it was illegal. I said it was a fraudulent transfer which is a legal term.

The legal term is also known as voidable transfer( probably because people got confused about it being illegal)

When did I say it was illegal? Why do you think that I think its illegal?

I searched the term " illegal " on this post and your post is the first one which said the word " illegal" it was never said in any of my post . ...

“Illegal” means contrary to law, against or not authorized by law.

Deemed by a Judge or Jury. The court system.

So if a fraudulent transfer has occurred, the outcome could be 1,000s of different things?

Ranging from forcing the company to pay fair market value for what was taken to reversing the transaction that took place and everything in between?

There is no set outcome when something like this happens is what you are saying?

Here is a link to Utah’s law that shows what options a judgment creditor has if a transfer of assets by a debtor was found to be fraudulent:

https://le.utah.gov/xcode/Title25/Chapter6/25-6-S303.html?v=C25-6-S303_2017050920170509

If you are the debtor found by a court to have fraudulently transferred assets, you might find that the fraudulent transfer has not been the smartest way to avoid paying your debt. If you are the judgment creditor, you have options.