Texas Business & Commerce Code - Section 24.005. Transfers Fraudulent As To Present And Future Creditors
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§ 24.005. TRANSFERS FRAUDULENT AS TO PRESENT AND FUTURE
CREDITORS. (a) A transfer made or obligation incurred by a debtor
is fraudulent as to a creditor, whether the creditor's claim arose
before or within a reasonable time after the transfer was made or
the obligation was incurred, if the debtor made the transfer or
incurred the obligation:
(1) with actual intent to hinder, delay, or defraud
any creditor of the debtor; or
(2) without receiving a reasonably equivalent value in
exchange for the transfer or obligation, and the debtor:
(A) was engaged or was about to engage in a
business or a transaction for which the remaining assets of the
debtor were unreasonably small in relation to the business or
transaction; or
(B) intended to incur, or believed or reasonably
should have believed that the debtor would incur, debts beyond the
debtor's ability to pay as they became due.
(b) In determining actual intent under Subsection (a)(1) of
this section, consideration may be given, among other factors, to
whether:
(1) the transfer or obligation was to an insider;
(2) the debtor retained possession or control of the
property transferred after the transfer;
(3) the transfer or obligation was concealed;
(4) before the transfer was made or obligation was
incurred, the debtor had been sued or threatened with suit;
(5) the transfer was of substantially all the debtor's
assets;
(6) the debtor absconded;
(7) the debtor removed or concealed assets;
(8) the value of the consideration received by the
debtor was reasonably equivalent to the value of the asset
transferred or the amount of the obligation incurred;
(9) the debtor was insolvent or became insolvent
shortly after the transfer was made or the obligation was incurred;
(10) the transfer occurred shortly before or shortly
after a substantial debt was incurred; and
(11) the debtor transferred the essential assets of
the business to a lienor who transferred the assets to an insider of
the debtor.
Amended by Acts 1987, 70th Leg., ch. 1004, § 1, eff. Sept. 1,
1987; Acts 1993, 73rd Leg., ch. 570, § 10, eff. Sept. 1, 1993.
Section: 23.31 23.32 23.33 24.001 24.002 24.003 24.004 24.005 24.006 24.007 24.008 24.009 24.010 24.011 24.012
Last modified: August 11, 2007
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