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Effective January 1, 2016, SB 161 creates the California’s Uniform Voidable Transactions Act (UVTA) codified in California Civil Code § 3439 et. seq. The purpose of the UVTA is to make it easier for creditors to attach and reclaim assets transferred by a debtor to a third party while the debtor was “insolvent.” Under the prior law, creditors were often forced to prove by clear and convincing evidence that the debtor was trying to commit fraud. Under the new UVTA, to void a transfer that occurs after January 1, 2016, the creditor must now only show by a “preponderance” of the evidence” that: (1) the debtor was insolvent at the time of the transfer and that (2) the third party to whom the property was transferred paid less than its reasonable value.
Under UVTA, a creditor asserting a UVTA claim will also be able to obtain a pre-judgment attachment on a transferee’s assets generally, rather than just on the asset(s) transferred or its proceeds.
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Disclaimer: The information presented on this web site was prepared by Melissa C. Marsh for general informational purposes only and does not constitute legal advice. The information provided in my articles and alerts should not be relied upon, or used as a substitute for professional legal advice from an attorney you retain to advise or represent you. Your use of this Internet site does not create an attorney- client relationship. Transmission of this article is not intended to create, and receipt of it does not constitute, an attorney-client relationship. All uses of the contents of this site, other than personal uses, are prohibited. You may print or email a copy of any information posted on this web site for your own personal, non-commercial, use, but you may not publish any of the articles or posts on this web site without the Express Written Permission of Melissa C. Marsh.
Located in Los Angeles, California, the Law Office of Melissa C. Marsh handles business law and corporation law matters as a lawyer for clients throughout Los Angeles including Burbank, Sherman Oaks, Studio City, Valley Village, North Hollywood, Woodland Hills, Hollywood, West LA as well as Riverside County, San Fernando, Ventura County, and Santa Clarita. Attorney Melissa C. Marsh has considerable experience handling business matters both nationally and internationally. We routinely assist our clients with incorporation, forming a California corporation, forming a California llc, partnership, annual minutes, shareholder meetings, director meetings, getting a taxpayer ID number (EIN), buying a business, selling a business, commercial lease review, employee disputes, independent contractors, construction, and personal matters such as preparing a will, living trust, power of attorney, health care directive, and more.