Fraudulent Conveyance Lawyers, Denver Colorado

Fraudulent Conveyance Lawyers, Denver Colorado

If they moved it, Call us.

"Putting it in the Wife's Name" Can Spell Big Trouble.

Re-titling, quit-claiming, assigning or transferring property in order to hinder a creditor can be easily unwound by creditors and their attorneys. It can cause additional problems too, such as when the recipient refuses to give it back. This is why creditor problems should be handled using the standard procedures of consultation, modification, negotiation and at length, bankruptcy. Transferring assets around to thwart them simply does not work and can involve you in plenty of trouble. Consider the following. Here is the scoop on fraudulent conveyances:

"A transfer of property that is made to swindle, hinder, or delay a creditor, or to put such property beyond his or her reach"

This is known as a fraudulent conveyance, and these transactions can be set aside, or un-done, by creditors. The creditors need only show that the substantial purpose of the transaction was to 'swindle, hinder, or delay them, and a court can put the asset right back where it was. But other problems crop up as well for those who attempt a fraudulent conveyance. Consider the following...

Sister Won't Return My House!

Imagine John Q. transfers his Picasso painting by quitclaim deed to his sister, in order to avoid losing it to Bank X, which just won a judgment against him. Sister receives the property for free and agrees to return it later, when the storm has cleared. She never reports the gift to the IRS, nor does John Q. Well, John owes gift tax on the gift, very likely, and has now involved himself in tax fraud. Might the sister be committing tax fraud by not declaring the gift or receipt of property as income? Well, it is one or the other, isn't it? What's more, imagine 10 years later. Sister has insured and taken good care of the painting, permitting it to be shown around the world at prestigious galleries. She has even borrowed against it and is using the loan as working capital in her business. Her partners are so pleased with her hard work and they have all kicked in extra investments like she did, following her example. Now John Q asks for the painting back. Sister refuses, saying it was never supposed to be returned, and besides, it is now more valuable since she has cared for it and promoted it. Oh, and the bank will not permit the transfer now that it is collateral under sister's loan. She suggests John buy her out of it, for a few thousand over and above the loan amount. But now John can't qualify for credit because of his bad credit score. Even if John does not get busted for the fraudulent conveyance, he is in for a hard time getting it back. He will have to sue, and argue to the court that it was his because his conveyance to her was just a ruse to screw his old creditors...not a very workable argument in a court of law. We see these issues all the time. If someone has fraudulently conveyed property of yours, call us today.

Contact a Denver Business Lawyer at Williams Law, P.C. for legal counsel and litigation representation.