DO I HAVE GROUNDS TO SUE?
Fraudulent conveyance actions can be generally divided into two types: actual fraud and constructive fraud. Our firm represents both creditors and debtors in fraudulent conveyance litigation and settlement negotiations.
This area of law is governed by the New York Debtor and Creditor Law. This law protects creditors when a debtor tries to hide assets from collection efforts. The creditor has the burden of establishing fraudulent intent, which means that the debtor intended to hinder, delay, or defraud either present or future creditors. Alternatively, a creditor can prove a constructive fraudulent conveyance, without proof of such intent, where the conveyance was made without fair consideration by a person who is or will be rendered insolvent, or by a person engaged in a business for which the property remaining in his hands after the conveyance is an unreasonably small capital. A variety of remedies are available, including avoiding the transfer, attaching the transferred asset, enjoining the disposition of the asset with a preliminary injunction, appointing a receiver to take charge of the asset, and in some cases, money damages.