Orange County Fraudulent Transfer Lawyer

Recovering Fraudulent Transfers as a Judgment Collection Tool

collection-attorney-officeDebtors commonly transfer assets to spouses, relatives and friends in an attempt to shield them from collection.  California’s fraudulent transfer laws provide a strong mechanism by which creditors can reach fraudulently transferred assets.  Creditors must understand how to search for fraudulent transfers and the steps necessary to recover debtors’ assets.

Need Help Recovering Fraudulent Transfers in California?

The Wallin Firm has extensive experience in investigating, discovering and recovering fraudulent transfers.  Quick action is often crucial in unwinding fraudulent transactions.  Please contact us at (949) 203-3870 to discuss your options.

How to Collect Judgments via Recovering Fraudulent Transfers

  1. First, the creditor must assess whether the debtor has fraudulently transferred assets.  California law deems two type of transfers fraudulent: (i) any transfer made with the actual intent to hinder, delay or defraud any creditor (“actual fraud”); or (ii) transfers in which the debtor did not receive “reasonably equivalent value” in exchange for the transfer, if the transfer was made when the debtor was insolvent (“constructive fraud”).  To establish “actual fraud,” the debtor’s intent is the key.  Certain type of transfers are deemed to have “indicia of fraud” such as transfers to family members and transferred made just prior to incurring a major debt.  To establish “constructive fraud,” the debtor’s intent does not matter.  Rather, the key issue is what (if anything) the debtor received in exchange for the item transferred.  For example, if the debtor deeded his home to a family member, did the family member pay the debtor the fair market value of the home?  If not, the transfer is likely constructively fraudulent.  See Civil Code § 3439.04.
  2. Second, if a transfer was fraudulent, the creditor must understand the remedies available to him.  The following remedies are available:
  3. Avoidance of the transfer (i.e., forcing the asset transferred back to the debtor);
  4. An attachment against the asset transferred (i.e., a court order “freezing” the asset transferred, such that the transferee cannot transfer it further);
  5. An injunction against further transfers by the debtor or the transferee, or both;
  6. Appointment of a receiver to take charge of the asset transferred or its proceeds; and
  7. If the creditor has a judgment against the debtor, the creditor may levy on the asset transferred or its proceeds.  See Civil Code § 3439.07.
  8. Third, the creditor must know how to obtain the remedies described above.  To obtain the above-described remedies, the creditor must file a fraudulent transfer lawsuit against both the debtor and the transferee (i.e., the recipient of the transfer).


Contact The Wallin Firm Today for a Judgment Review

If you suspect that the debtor has fraudulently transferred assets, please contact us immediately to assess your options.  The Wallin Firm is able to take quick action to attempt to unwind the fraudulent transaction.  We can be reached at (949) 203-3870.  We are always willing to provide a complimentary analysis of your business collection matter or judgment in Orange County or elsewhere in California.

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