Fraudulent transfer is a civil remedy creditors use to reach assets that were transferred after a creditor threat for the purpose of hiding or concealment of such assets. To commit a fraudulent transfer you must have the intent to defraud or delay creditors in obtaining your assets in satisfaction of a civil judgment against you. Fraudulent transfer is a civil remedy, not a crime. The basis of fraudulent transfer is that you have transferred assets after you have received a judgment against you.
One common misconception in a fraudulent transfer claim is that you may be subject to penalties similar to those of criminal fraud (which include fines and/or imprisonment). We cannot stress enough how untrue this misconception is and that fraudulent transfer is strictly a civil remedy. Criminal fraud involves actions such as mail fraud, stealing identities, counterfeiting, bank fraud, tax evasion, embezzlement and bankruptcy fraud. Fraudulent transfer laws only allow a creditor to take advantage of civil remedies that primarily include the return of assets in the event the creditor wins their case. In other words, there are almost no circumstances that will deem you to be held criminally liable for protecting your assets from creditors; however, you still should understand how to do it correctly.
The best way to protect assets from creditors is to be proactive. That means the assets should not be under duress or subject to an imminent or current creditor attack. However, even if you are in a lawsuit, our attorneys can still protect your assets as the only cause of action your creditor can pursue is fraudulent transfer, which is only a civil remedy. The best asset protection strategy is being proactive, but you still have many options if you already have a creditor attack.
Contact the Attorneys of The Noble Law Firm, P.A. to discuss how to legally and ethically protect your assets.