Not so sure about fraudulent conveyance? Consider this...
You're a business owner and a customer owes you a substantial sum. You sense the customer is not going to pay and suspect the customer – an individual or business - is shedding assets.
You're evaluating options. What do you do? Where did the assets go? Is the receivable uncollectible? Are you stuck? Your answer may lie in the Voidable Transactions Act.
The Georgia Voidable Transactions Act prohibits transfers made with the intent to hinder, delay or defraud any creditor of the debtor - also known as a fraudulent conveyance. Numerous other states follow this statute. However, it is not the exclusive remedy for a creditor. Any traditional remedy that a creditor could pursue before the Act was passed remains available to them.
Creditors would be wise to analyze their rights under the Act in pursuit of a debt. This could be as simple as a financial institution seeking recovery of a promissory note. Or, in a more complicated scenario, any business seeking payment under an agreement where it suspects the debtor may have taken steps to make collection efforts more difficult.
So, what does the Act cover? Who does it protect? And who can be sued under the Act? This information and more can be found at my blog on this subject at BFVLaw.Com.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.