Under the new law, there is only a four year lookback with respect to constructively fraudulent transfers or incurred obligations and the later of four years or one year from discovery in the case of intentionally fraudulent transfers. The old law had a generous six year lookback period. How Far Back Can the Creditor Look For Fraudulent Transfers?.The old law covered only “conveyances”, which meant “every payment of money, assignment, release, transfer, lease, mortgage or pledge of tangible or intangible property, and also the creation of any lien or encumbrance.” The new law is broader and defines “voidable transfers”, as “every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset, and includes payment of money, release, lease, license, and creation of a lien or other encumbrance.” Under the new law, New York law will apply if the individual defendant principally resides in New York at the time of the transfer, or in the case of a defendant which is an organization, such as a corporation, New York law will apply if the organization has its place of business in New York. The old law applies to transfers which occurred before April 4, 2020. New York’s new Uniform Voidable Transaction Act applies to transfers made or obligations incurred after April 4, 2020. Here are some of the highlights of the new law. Those who obtain and collect money judgments should be aware of the new, more uniform and clearer standards, reduced timelines, and changes in the burdens of proof. After about ninety years, New York State has revised its fraudulent conveyance rules.
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