Could you be affected by fraudulent activity and not know it?
The Uniform Fraudulent Transfers Act (“UFTA”), which has been adopted in 40 states including Minnesota, can be a blessing or a curse for companies and individuals. The basic premise of UFTA is to prohibit a debtor from transferring assets to avoid the claim of a creditor.
For anyone re-structuring and reorganizing businesses to maximize cost-savings and efficiency and minimize tax exposure and legal liability, UFTA can be a legal trap. That’s because the broad language utilized in the Act to define terms such as “debtor,” “creditor” and “claim” brings seemingly legitimate business transactions and asset protection strategies into UFTA’s scope.
On the other hand, UFTA is a useful tool for creditors because it provides additional causes of action and remedies against debtors attempting to transfer assets solely to avoid financial obligations. UFTA can be leveraged in debt collection efforts and any resulting litigation.
Your litigation team at Messerli & Kramer is experienced and proactive in representing creditors and debtors regarding UFTA claims. Let us help you find a solution that won’t end in the F word – Fraud. As always, we believe an ounce of prevention is worth a pound of litigation.
This communication does not constitute legal advice or create an attorney-client relationship. Please consult an attorney if you have questions.