A key development for creditors seeking to collect business debt or collect judgments in California:
In July 2015, the Uniform Voidable Transactions Act was signed into California law. This new law has implications for both debtors and creditors, as it modifies and replaces the former Uniform Fraudulent Transfer Act.
As creditors know, collecting debt in California often involves pursuing fraudulent transfer claims. Creditor and collection law firms, such as ours, regularly see debtors transfer away their assets in the hopes of preventing levy, garnishment, etc. Collection attorneys and law firms are well served to quickly and aggressively pursue fraudulent transfer claims against both debtors and the recipients of the fraudulent transfers.
The Uniform Voidable Transactions Act shifts the burden of proof in certain aspects of fraudulent transfer claims and alters several definitions under the Act. For instance, the term “fraudulent” has been replaced with the term “voidable.” The new law’s provisions only apply to matters in which the right of action accrued, the transfer was made, or the obligation was incurred on or after the January 1, 2016.
Some of the more significant amendments to the former law include the following:
The new law contains information that is imperative for all relevant parties to be aware of. The Wallin Firm is experienced in navigating through the ever-changing legal landscape, particularly relating to creditor/debtor issues. The Wallin Firm is a business collection law firm that helps businesses collect debt in Orange County and throughout California.