A California appeals court recently determined that debtors who attempt to avoid debt collection by moving their assets out of state and into a different legal form may be liable for fraudulent transfer under California law. On January 7, 2021, the California Court of Appeals issued a decision in Nagel v. Western (2021) 59 Cal.App.5th 740. In Nagel the court held that under California’s Uniform Voidable Transactions Act (the “UVTA”), “physically relocating personal property and transmitting or transporting sale proceeds out of state, then transmuting them into a different legal form, may constitute a direct or indirect mode of parting with assets or one’s interests in those assets.” This means that such transfers would fall under the fraudulent transfer prohibitions of the UVTA. In short, debtors can no longer feel safe trying to shield their assets from creditors by moving them out of state and changing their form. And Creditors have a new mechanism at their disposal to try to access those assets despite such maneuverings on the part of the debtors.
Other AALRR Blogs
Recent Posts
- Section 16600 and the Fate of Trade Secret Exception
- The Contract Is In The Details
- Teaming With Our Clients – California Adopts “Initial Disclosures” in State Court Civil Litigation
- Recent Court of Appeal Decision Shows The Limits Of Exculpatory Clauses In Commercial Leases, Including Limitation of Damages Provisions
- Understanding Deceptive California Statement of Information Scams
- Closing of Pre-Hearing Discovery Loopholes in Arbitration
- International Enforcement of U.S. Trademarks: Simplicity for Complexity’s Sake
- Last Minute Court Decision Delays Enforcement of CPRA Regulations
- Trademark Infringement Is No Joking Matter: Supreme Court Reevaluates Parody Fair Use Exception and First Amendment’s Place in Trademark Infringement
- Department of Justice Expands PPP Investigations from Brazen Fraud to More Technical Violations, including Investigation into Private Clubs
Popular Categories
- (23)
- (24)
- (4)
- (4)
- (2)
- (15)
- (3)
- (3)
- (2)
- (2)
- (2)
- (5)
- (1)
- (4)
- (5)
- (4)
- (1)
- (3)
- (2)
- (1)
- (1)
- (1)
- (1)
- (1)
- (1)
- (1)
- (1)
- (1)
- (1)
- (1)
- (1)
- (1)
- (1)
- (1)
Contributors
- Sean M. Anderson
- Cindy Strom Arellano
- Reece C. Bennett
- Eduardo A. Carvajal
- Michele L. Collender
- Scott K. Dauscher
- Christopher M. Francis
- Runmin (Ivy) Gao
- Chayanm Garcia (CJ)
- Evan J. Gautier
- Carol A. Gefis
- Amber S. Healy
- Edward C. Ho
- Micah R. Jacobs
- John E. James
- Jonathan Judge
- David Kang
- Neil M. Katsuyama
- Joseph K. Lee
- Shawn M. Ogle
- Kenneth L. Perkins, Jr.
- Jon M. Setoguchi
- Jon Ustundag
- Brian M. Wheeler