Raleigh Preferential and Fraudulent Transfer Lawyer

Navigating the complexities of preferential and fraudulent transfers can be challenging, especially when financial stability is at stake. At Etheridge Law PLLC, we represent individuals and businesses in Raleigh dealing with issues related to preferential and fraudulent transfers.

Understanding Preferential and Fraudulent Transfers

In the context of insolvency and bankruptcy, certain transactions may be scrutinized to ensure fairness among creditors.

Preferential Transfers: These occur when a debtor favors one creditor over others by transferring assets or making payments shortly before declaring bankruptcy. Under the Bankruptcy Code, a trustee can avoid such transfers if they were made within 90 days before the bankruptcy filing (or one year if the creditor is an insider), were for an antecedent debt, made while the debtor was insolvent, and allowed the creditor to receive more than they would have under standard bankruptcy proceedings.

Fraudulent Transfers: These involve transactions where a debtor intentionally moves assets to hinder, delay, or defraud creditors. The Bankruptcy Code permits trustees to avoid transfers made with actual intent to defraud creditors or those where the debtor received less than reasonably equivalent value while insolvent.

Identifying Fraudulent Transfers

Determining fraudulent intent can be challenging, but certain “badges of fraud” may indicate such intent, including:

  • The transfer was to an insider;

  • The debtor retained possession or control of the property after the transfer;

  • The transfer was concealed;

  • The debtor had been threatened with a lawsuit before the transfer;

  • The transfer was of substantially all the debtor's assets;

  • The debtor absconded or removed assets; and/or

  • The debtor received inadequate consideration for the transfer.

These indicators can help in assessing whether a transfer was made with fraudulent intent.

Legal Recourse and Defenses

If a transfer is deemed preferential or fraudulent, it can be challenged and potentially reversed through legal action. There are defenses, such as proving the transfer was a contemporaneous exchange for new value or that it was made in the ordinary course of business. Each case is unique, requiring thorough analysis and strategic planning.

How Etheridge Law PLLC Can Assist You

At Etheridge Law PLLC, we are committed to providing collaborative and strategic legal services to our clients. Our approach includes:

  • Comprehensive Analysis: Evaluating the specifics of your case to determine the nature of the transfer and potential legal implications.

  • Evidence Gathering: Collecting and analyzing relevant documentation, financial records, and communications.

  • Expert Consultation: Collaborating with financial experts to assess the value of transferred assets and the debtor's financial condition.

  • Negotiation and Litigation: Engaging with opposing parties to seek resolution and, if necessary, representing you in court to protect your interests. We understand the complexities involved in preferential and fraudulent transfer cases and are dedicated to guiding you through the legal process with diligence and care

Contact Etheridge Law PLLC Today

If you are facing issues related to preferential or fraudulent transfers in Raleigh, don't navigate these challenges alone. Reach out to Etheridge Law PLLC for a consultation to discuss your case and explore your legal options.

Let us help you protect your rights and achieve a fair resolution.