In particular, fraudulent transfer law allows creditors to avoid transfers of property or obligations incurred to the extent these transactions are made either with the intent to hinder, delay or defraud creditors (the words of the original 1571 statute), or are made for less than reasonably equivalent value and leave the tranferor or obligor in a precarious financial state.
As an example, a classic fraudulent transfer occurs if a person, when pressed by creditors and in an effort to avoid collection activity, transfers his or her car or home to relatives for little or no consideration. Under the Act, a creditor of the person transferring the car or home would have the ability to ignore this change of title, and could sue the relative for the value of the car or home. Similarly, gifts of property or money made when the transferor is insolvent (that is, does not have enough assets to satsify all creditor claims) is also a fraudulent transfer. This is but one instance of the maxim that one must be just before being generous.
The Indiana Uniform Fraudulent Transfer Act was signed into law on March 11, 1994, and is applicable to all transfers made or obligations incurred into on or after July 1, 1994. It expressly repeals I.C. § 32-2-1-14, which had been adopted in 1852. The Indiana Act is a modified adoption of the Uniform Fraudulent Transfer Act, drafted and sponsored by the National Conference of Commissioners of Uniform State Laws. The Conference promulgated it in 1984, and the American Bar Association approved it in 1985. It is now the law in 33 American states.
Date: October 3, 1994