Once in a while, an attorney hears both sides of a sad story. Recently, our…
Has a debtor ever tried to evade or get away from you by selling or giving away their significant assets? If so, did you feel like you had nothing that you could do? Well there are legal standards that might help you void that transaction and help you recover against the debtor.
The Uniform Voidable Transactions Act (UTVA) was created by the Uniform Law Commission in 2014 by revising the Uniform Fraudulent Transfers Act. The UTVA passed in North Carolina in 2015. In North Carolina, the law is General Statute Chapter 39 Article 3A. The act provides several ways to potentially void a transaction by the debtor. Parts of the act may even be used by creditors whose debt arose after the transfer of assets occurred. The act also contains remedies for creditors who successfully prove their claim. Ultimately, this act can prove to be useful for creditors when a debtor is attempting to avoid payment by transferring assets to other entities.
For more information regarding the UTVA, see the following: https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/ByArticle/Chapter_39/Article_3A.pdf