It might feel counterintuitive at first, but I always talk with clients about the end of the lawsuit before giving the option to file one. Why? Because I believe that true client advocacy includes walking through what you’re fighting for – and because in most cases, our clients are fighting for monetary relief, I want to make sure collecting that relief is possible at the end of the road. Especially because litigating is expensive.
One concern many clients voice goes something along the lines of: “what if the defendant or counter-defendant moves his assets around once he realizes his risk exposure so he effectively becomes judgment-proof?” The good news is, there is a California claim available for any judgment creditor in exactly that scenario. The bad news is, it means starting another lawsuit.
So, below is a breakdown of California’s fraudulent transfer claim for those who are considering their pre-litigation options, or maybe for those who have judgments in hand and feel defeated.
A fraudulent transfer claim is available when the debtor/owing party tries to avoid paying a debt by transferring his/her property to a third party. The Uniform Voidable Transactions Act (“UVTA”), codified at Civil Code § 3439