Legal Definitions - UFTA

Definition: UFTA stands for Uniform Fraudulent Transfer Act. It is a law that helps protect creditors from debtors who try to hide or transfer their assets to avoid paying their debts.

• If someone owes money to a creditor and they transfer their house to a family member for free, that could be considered a fraudulent transfer under UFTA.
• Another example is if a business owner transfers all of their assets to a new company they just created, leaving the old company with no assets to pay its debts. This could also be considered a fraudulent transfer under UFTA.

These examples illustrate how UFTA helps prevent debtors from cheating their creditors by transferring or hiding their assets. By making these actions illegal, UFTA helps ensure that creditors are paid what they are owed.