Full question:
I'm considering filing a judgement against an individual who owns me money for an unpaid loan. This individual owns commercial properties which he is selling to family members and friends. He is selling the commercial properties for the balance due on the mortgage of the properties, which is considerably less than the fair market value of the properties. If I were to file a judgement against this individual and he claims not to have any money or assets to pay me, do I have any recourse against the individuals who purchased the properties for less the fair market value?
- Category: Real Property
- Subcategory: Liens
- Date:
- State: Utah
Answer:
If a debtor transfers property while knowing they owe money, that transfer may be challenged as a fraudulent conveyance. According to the Uniform Fraudulent Transfer Act, a transfer is fraudulent if the debtor intended to defraud creditors or did not receive a fair value in exchange for the property, especially if they were about to incur debts they couldn't pay (Fla. Stat. § 726.105).
A bona fide purchaser for value (BFP) is someone who buys property without knowing it is subject to claims or sold for less than its fair value to evade creditors. If the sale price is suspiciously low, the buyer may not be considered a BFP and could be liable for the transfer.
When you obtain a judgment, you can file a judgment lien against the debtor's property. This lien gives you a legal claim to the property until the debt is satisfied. You cannot create a lien by merely serving a copy of the judgment; it must be formally filed after obtaining a court judgment.
As a judgment creditor, you can also seek wage garnishment, where a portion of the debtor's earnings is withheld by their employer to pay your debt. Certain types of income are exempt from garnishment, such as welfare and Social Security benefits. The maximum garnishment amount is usually the lesser of twenty-five percent of the employee's disposable earnings or the amount exceeding thirty times the federal minimum wage.
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.