Certainly, nothing herein is any substitute for the services, advice, or counsel of a properly licensed attorney in the relevant state!Three-Step/Four-Test Analysis of the Uniform Fraudulent Transfers Act by Jay D.
If the court figures out that the transaction is a sham to defeat the creditor, the court will set aside the transaction and make the person holding the assets (the "transferee") give them back to the creditor.
When you consider that the landmark case on fraudulent transfer law is Twyne's Case, announced in the Star Chamber by Lord Coke in 1601, you know that the law of fraudulent transfers has been around a long, long time.
In 1918, the Uniform Law Commissioners decided that the law relating to fraudulent transfers deserved codification, and thus came forth with the Uniform Fraudulent Conveyances Act ("UFCA"), which 25 eventually adopted. Changes to other law — primarily to the Uniform Commerical Code and Bankruptcy Reform Act of 1978 — militated in favor of updating the UFCA, and in 1984 the Uniform Fraudulent Transfers Act ("UFTA" or "Act") was adopted by the Uniform Law Commissioners, and thus far 40 states have adopted UFTA. UFTA is a poorly organized and poorly drafted Act.
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