Did the Debtor Intend to Commit Fraud?

In deciding whether a transfer is fraudulent, a Texas court will consider a number of factors. The court is attempting to determine whether the actual intention of the debtor was to commit an act of fraud against our client.

Some things the court will consider:

  1. Whether the transfer or obligation was to an insider.
  2. Whether the debtor retained possession or control of the property after the transfer.
  3. Whether the transfer or obligation was concealed.
  4. Whether the debtor had been sued or threatened with suit before the transfer was made or the obligation was incurred.
  5. Whether the transfer was substantially all of the debtor’s assets.
  6. Whether the debtor disappeared.
  7. Whether the debtor removed or concealed assets.
  8. Whether the debtor received a reasonable value for the asset it transferred.
  9. Whether the debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred.
  10. Whether the transfer occurred shortly before or shortly after a substantial debt was incurred.
  11. Whether the debtor transferred the essential assets of the business to a lienor who transferred the assets to an insider of the debtor.
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