To prove a fraudulent conveyance occurred, South Carolina creditors are generally required to meet the following three elements: When such a transfer occurs, the UFTA provides a remedy to creditors, allowing them to get access to fraudulently transferred property that would have otherwise not been available to satisfy a debt. A fraudulent conveyance is generally not a criminal issue. The UFTA makes it a civil violation for debtors to transfer assets to a third party simply to avoid paying back creditors. South Carolina is one of many states that has signed onto the Uniform Fraudulent Transfer Act (UFTA). South Carolina Law: Fraudulent Conveyances In this article, our Columbia, SC debt collection attorneys highlight the most important things creditors should know regarding South Carolina’s laws on fraudulent conveyances. If a transaction is deemed to be a ‘fraudulent conveyance’ a creditor may have the right to void it. (b) the judgment debtor's or another person's interest in the land.On behalf of Crawford & von Keller, LLC on Saturday June 29, 2019Īs explained by the Cornell Legal Information Institute, a fraudulent conveyance is a transfer of real property - money or assets - for the primary purpose of putting it outside of the reach of creditors. (a) the land in respect of which the application is made, or (3) In an application under this section, a judgment creditor may claim to be entitled to register the judgment against (b) why the disposition or payment should not be set aside and the property returned or otherwise dealt with as the court may direct. (a) why the land, or a competent part of it, should not be sold to realize the amount payable under the judgment, or (2) In the circumstances described in subsection (1), an application may be made to the Supreme Court by the judgment or other creditor or assignee or person entitled to the money, calling on the judgment debtor or person who is to pay, and the person to whom the conveyance or other disposition has been made or who has acquired any interest under it, to show cause It is not necessary to institute an action to set aside the disposition. (b) a creditor or assignee for the benefit of creditors alleges that a disposition is void under sections 2 to 6, (a) a judgment creditor alleges that the debtor or person who has to pay has made a conveyance or other disposition of any of that person's land, which conveyance or other disposition is void, as being made to defeat, hinder, delay, prejudice or defraud creditors, or (5) Nothing in this section invalidates a security given to a creditor for an existing debt if, because of the giving of the security, an advance in money is made to the debtor by the creditor in the belief in good faith that the advance will enable the debtor to continue the debtor's business and to pay the debtor's debts in full. (4) Nothing in this section prevents a debtor providing for any payment of money to a creditor if the creditor, because of the payment, has lost or been deprived of or has in good faith given up a valid security which the creditor held for the payment of the debt so paid, unless the value of the security is restored to the creditor, or the substitution in good faith of one security for another security for the same debt, so far as the debtor's estate is not lessened in value to the other creditors. (3) In case a payment has been made which is void under this Act, and valuable security was given up in consideration of the payment, the creditor is entitled to have the security restored or its value made good to the creditor before, or as a condition of, the return of the payment. (2) In case of a valid sale of property, a payment or transfer of some or all of the consideration by the purchaser to a creditor of the vendor, under circumstances which would render void the payment or transfer by the debtor personally and directly, the payment or transfer, valid as respects the purchaser, is void as respects the creditor to whom it is made. (c) in consideration of a present actual disposition in good faith of any property. (b) by way of security for a present actual advance of money in good faith (a) in consideration of a present actual payment in good faith in money 6 (1) Nothing in sections 3, 4 and 5 applies, if the money paid, or the property disposed of bears a fair and reasonable relative value to the consideration, to a sale in good faith, to a payment made in the ordinary course of business to innocent persons, to a payment to a creditor, or to a disposition in good faith of property of any kind made in any of the following circumstances:
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |