Full question:
I have a tolling agreement that has been extended several times with an estate lawyer I intend to sue for legal malpractice...as soon as the trust accounting is complete. Since the tolling, she has moved all her money into a trust. Is this fraudulent conveyance? Does the announcement of tolling and also prior to that official demand letters for fee return prove I'm a creditor enough or must the lawsuit have been filed?
- Category: Debts and Credit
- Date:
- State: California
Answer:
To determine if you are a creditor, it's important to consider the relevant laws. A creditor is generally defined as an entity holding a claim against a debtor that arose before a bankruptcy case began. The bankruptcy code defines a "claim" broadly, including any right to payment, whether it's fixed, contingent, or disputed.
Under the Uniform Fraudulent Transfer Act, a transfer can be considered fraudulent if:
- The debtor intended to hinder, delay, or defraud any creditor.
- The debtor did not receive reasonably equivalent value in exchange for the transfer and:
- Was engaged in a business or transaction with unreasonably small remaining assets.
- Intended to incur debts beyond their ability to pay.
In your case, the tolling agreement and demand letters may establish you as a creditor. However, the specifics of your situation and applicable state laws will ultimately determine your status and the potential for a fraudulent conveyance claim.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.