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A bold although correct statement is that over time, fraud becomes legal. The passing of time alone may be the number one rule for any plan to protect assets. This is primarily due to time limits for when judgment creditors can attempt to undo fraudulent transfers to satisfy their judgment. FT time limits may be disastrous to judgment owners that got ripped off, who might then no longer be able to hire a lawyer to try and unravel a fraudulent transfer. The police are never concerned with fraud alone, as common fraud is a civil issue. This article is my opinion and is not, legal advice. I am a judgment referral expert, and not a lawyer. If you ever need legal advice or a strategy to use, please contact a lawyer. If you sell an asset and get paid with a regular sale, that's not a fraudulent transfer. Fraudulent transfer is when you move your assets without fair compensation, with the purpose of trying to defeat creditors. When it comes to fraud, simple asset protection schemes only become effective when the statute of limitation time limits have passed. It does not succeed if you move your assets just as you get sued, while the lawsuit is progressing, or shortly after you're sued. If you plan to get sued, make sure it is after the statute of limitation has passed, if you have transferred something. The fraudulent transfers laws for every state have minor differences, and the biggest distinction is their fraudulent transfer time limits. Most states use the Uniform Fraudulent Conveyances Act (UFCA), although other states use the newer Uniform Fraudulent Transfer Act (UFTA), and a few do not use either one. The Uniform Fraudulent Transfer Act contains another standard for creditors to meet, that creditors must act within one year of when that fraudulent transfer "was or could reasonably have been discovered". This is on top of the regular time limits. To my knowledge this list of fraudulent state time limits (years) is correct: These states use the UFTA: Alabama (4), Arizona (4), Arkansas (3), California (4, 7 regardless of discovery, see California Civil Code 3439.09), Colorado (4), Connecticut (4), Delaware (4), District of Columbia (4), Florida (4), Georgia (4), Hawaii (4 years), Idaho (4), Illinois (4), Indiana (4), Iowa (5), Kansas (4), Maine (6), Massachusetts (4), Michigan (6), Minnesota (6), Mississippi (3), Missouri (4) years, Montana (4), Nebraska (4), Nevada (4), New Hampshire (4), New Jersey (4), New Mexico (4), North Carolina (4), North Dakota (4), Ohio (4), Oklahoma (4), Oregon (4), Pennsylvania (4), Rhode Island (4), South Carolina (3), South Dakota (4), Texas (4), Utah (4), Vermont (4), Washington (4), West Virginia (4), Wisconsin (4), and Wyoming (4). These states use the UFCA: Kentucky (5), Maryland (3), New York (6 years, and a heightened pleading requirement for fraud, see CPLR 3016), Tennessee (4), and The Virgin Islands (see 28 VIC sections 201 to 212). These states do not use either the UFCA or the UFTA: Alaska (4), Louisiana (the lesser of 1 year of learning of the transfer and 3 years after the occurrence), Puerto Rico (31 LPRA section 3492), and Virginia (VA Code section 55-80, No time limit, only the laws concerning laches). Mark D. Shapiro of: http://www.JudgmentBuy.com - Your fastest and easiest free method of finding the best expert to recover or buy your judgment.
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