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This entry was published on 2020-04-10
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Transfer or obligation voidable as to present or future creditor
Debtor & Creditor (DCD) CHAPTER 12, ARTICLE 10
§ 273. Transfer or obligation voidable as to present or future
creditor. (a) A transfer made or obligation incurred by a debtor is
voidable as to a creditor, whether the creditor's claim arose before or
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:

(i) 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

(ii) 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 paragraph one of subdivision
(a) of this section, consideration may be given, among other factors, to

(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 disclosed or 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 that transferred the assets to an insider of the debtor.

(c) A creditor making a claim for relief under subdivision (a) of this
section has the burden of proving the elements of the claim for relief
by a preponderance of the evidence.