Contact Us Today! (949) 305-8642

Blog

The Uniform Voidable Transactions Act (UVTA) Applied in California

Posted by James Burns | Jan 11, 2023 | 0 Comments

The Uniform Voidable Transactions Act (UVTA) is a uniform act that was created by the National Conference of Commissioners on Uniform State Laws (NCCUSL) to provide a uniform set of rules for when a transfer of property can be avoided by a creditor. The UVTA replaced the Uniform Fraudulent Transfer Act (UFTA), which had been adopted by many states, but had been criticized for being confusing and difficult to apply.

The UVTA provides a set of rules for when a transfer of property can be avoided by a creditor on the grounds that the transfer was made with the intent to defraud, hinder, or delay creditors. The UVTA also contains provisions for the recovery of property transferred by a debtor, and for the distribution of the recovered property among creditors. It is not a Federal Law but many states have adopted it and modified it to fit with state laws.

The California Uniform Voidable Transactions Act (CUVTA) is the version of the Uniform Voidable Transactions Act (UVTA) that has been adopted by the state of California. The CUVTA provides a set of rules for when a transfer of property can be avoided by a creditor on the grounds that the transfer was made with the intent to defraud, hinder, or delay creditors. The CUVTA also contains provisions for the recovery of property transferred by a debtor, and for the distribution of the recovered property among creditors.

It generally corresponds to the UVTA but with some specific modifications and provisions to comply with California state laws. It provides set of rules for avoiding fraudulent transfers made by individuals and entities, both before and after incurring a debt and that can be used by creditors to recover transferred assets. It also expands the time frame in which a creditor can seek to have a transfer avoided, and it has different standards for avoiding a transfer depending on whether the transfer was made to an insider or to a third party.

The California Uniform Voidable Transactions Act (CUVTA) is the version of the Uniform Voidable Transactions Act (UVTA) that has been adopted by the state of California. The CUVTA provides a set of rules for when a transfer of property can be avoided by a creditor on the grounds that the transfer was made with the intent to defraud, hinder, or delay creditors. The CUVTA also contains provisions for the recovery of property transferred by a debtor, and for the distribution of the recovered property among creditors.

It generally corresponds to the UVTA but with some specific modifications and provisions to comply with California state laws. It provides set of rules for avoiding fraudulent transfers made by individuals and entities, both before and after incurring a debt and that can be used by creditors to recover transferred assets. It also expands the time frame in which a creditor can seek to have a transfer avoided, and it has different standards for avoiding a transfer depending on whether the transfer was made to an insider or to a third party.

The rules governing separate vs. community property liability for a spouse's debts during marriage and upon marriage dissolution are contained in Fam.C. § 900 et seq. These statutes also establish various rights of reimbursement predicated on the payment of particular debts for which the separate or community estate may be primarily liable. In addition, other statutes, together with a substantial body of case law, provide for rights of reimbursement in a property division proceeding. In one California case the entire community estate was liable for a criminal restitution judgment against the husband under the Mandatory Victim Restitution Act (18 USC § 3663). [United States v. Berger (9th Cir. 2009) 574 F3d 1202, 1205 (applying Calif. law). To this end, the type of debt has a bearing on the effects of any pre financial disaster planning.

About the Author

James Burns

Estate Planning, Asset Protection, Business and Real Estate Transactions, nutraceutical Law and franchising:

Comments

There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment

Menu