(a) A transfer made by a debtor is voidable as to a creditor, whether the creditor’s claim arose before or after the transfer was made, if the debtor made the transfer:

contract signature

Ask a consumer protection question, get an answer ASAP!
Thousands of highly rated, verified consumer protection lawyers.
Help with credit card debt, collections, defective products
Get help with bankruptcy, filing complaints, extended warranties & more
Click here to chat with a lawyer about your rights.

Terms Used In Alabama Code 8-9B-5

  • Asset: means property of a debtor, but the term does not include:
    (i) property to the extent it is encumbered by a valid lien;
    (ii) property to the extent it is generally exempt under nonbankruptcy law; or
    (iii) an interest in property held in tenancy in common for life with cross contingent remainder to the survivor in fee to the extent it is not subject to process by a creditor holding a claim against only one tenant. See Alabama Code 8-9B-2
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • claim for relief: means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured and specifically shall include the nonpayment of child support pursuant to a court order. See Alabama Code 8-9B-2
  • Creditor: means a person that has a claim. See Alabama Code 8-9B-2
  • Debt: means liability on a claim. See Alabama Code 8-9B-2
  • Debtor: means a person that is liable on a claim. See Alabama Code 8-9B-2
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Insider: includes :
    (i) if the debtor is an individual:
    (A) a relative of the debtor or of a general partner of the debtor;
    (B) a partnership in which the debtor is a general partner;
    (C) a general partner in a partnership described in clause (B); or
    (D) a corporation of which the debtor is a director, officer, or person in control;
    (ii) if the debtor is a corporation:
    (A) a director of the debtor;
    (B) an officer of the debtor;
    (C) a person in control of the debtor;
    (D) a partnership in which the debtor is a general partner;
    (E) a general partner in a partnership described in clause (D); or
    (F) a relative of a general partner, director, officer, or person in control of the debtor;
    (iii) if the debtor is a partnership:
    (A) a general partner in the debtor;
    (B) a relative of a general partner in, a general partner of, or a person in control of the debtor;
    (C) another partnership in which the debtor is a general partner;
    (D) a general partner in a partnership described in clause (C); or
    (E) a person in control of the debtor;
    (iv) an affiliate, or an insider of an affiliate as if the affiliate were the debtor; and
    (v) a managing agent of the debtor. See Alabama Code 8-9B-2
  • Property: means both real and personal property, whether tangible or intangible, and any interest in property whether legal or equitable and includes anything that may be the subject of ownership. See Alabama Code 8-9B-2
  • Transfer: means 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. See Alabama Code 8-9B-2
(1) with actual intent to hinder, delay, or defraud any creditor of the debtor; or
(2) without receiving a reasonably equivalent value in exchange for the transfer, and the debtor:

(i) was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction; or
(ii) intended to incur, or believed or reasonably should have believed that the debtor would incur, debts beyond the debtor’s ability to pay as they became due.
(b) In determining actual intent under subsection (a)(1), consideration may be given, among other factors, to whether:

(1) the transfer was to an insider;
(2) the debtor retained possession or control of the property transferred after the transfer;
(3) the transfer was concealed or not disclosed;
(4) before the transfer was made, the debtor had been sued or threatened with suit;
(5) the transfer was of substantially all the debtor’s assets;
(6) the debtor absconded;
(7) the debtor removed or concealed assets;
(8) the value of the consideration received by the debtor was not reasonably equivalent to the value of the asset transferred;
(9) the debtor was insolvent or became insolvent shortly after the transfer was made;
(10) the transfer occurred shortly before or shortly after a substantial debt was incurred; and
(11) the debtor transferred the essential assets of the business to a lienor that transferred the assets to an insider of the debtor.
(c) A creditor making a claim for relief under subsection (a) has the burden of proving the elements of the claim for relief by a preponderance of the evidence.
  Previous section
Next section  
 Chapter 9B Contents