Fraudulent Transfer Claims
Unwinding asset transfers.
When a debtor transfers money, real estate, business interests, or other assets to avoid paying a legitimate debt, Texas law provides remedies to challenge those transfers. Fraudulent transfer claims are frequently used to prevent debtors from placing assets beyond the reach of creditors, particularly after a lawsuit has been filed or a judgment has been entered.
Sparks Law represents businesses, lenders, judgment creditors, bankruptcy trustees, receivers, and individuals throughout Texas in fraudulent transfer claims. We prosecute and defend claims involving asset transfers, business reorganizations, insider transactions, and other efforts to hinder, delay, or defraud creditors.
What Is a Fraudulent Transfer?
A fraudulent transfer occurs when a debtor transfers assets in a manner prohibited by law, often to place those assets beyond the reach of creditors. Texas has adopted the Texas Uniform Voidable Transactions Act (TUVA), which allows courts to set aside or otherwise remedy certain transfers made with the intent to hinder, delay, or defraud creditors or for less than reasonably equivalent value under specified circumstances.
Fraudulent transfer claims commonly involve:
- Transfers to family members or business affiliates
- Transfers of real estate or business interests for little or no value
- Movement of funds between related entities
- Creation of new entities to hold existing assets
- Asset transfers made while litigation is pending
- Transfers occurring after a judgment has been entered
- Liquidation or dissipation of business assets to avoid collection
Every transfer is different, and not every transfer of assets is improper. Whether a transaction is voidable depends on the facts, the timing of the transfer, the financial condition of the debtor, and other factors recognized under Texas law.
Fraudulent Transfer Matters We Handle
Sparks Law represents clients in matters involving:
We represent both creditors seeking to recover assets and defendants responding to allegations that a transfer was improper.
