§ 5104. Transfer or obligation voidable as to present or future creditor.

401 words·~2 min read·/pa/title-12/chapter-51/5104

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)General rule.-- A transfer made or obligation incurred by a debtor is voidable as to a creditor, whether the creditor's claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation:

(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 or obligation, 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)Certain factors.-- In determining actual intent under subsection (a)(1), consideration may be given, among other factors, to whether:

(1)the transfer or obligation was to an insider;

(2)the debtor retained possession or control of the property transferred after the transfer;

(3)the transfer or obligation was disclosed or concealed;

(4)before the transfer was made or obligation was incurred, 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 reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred;

(9)the debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred;

(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 who transferred the assets to an insider of the debtor.

(c)Burden of proof.-- 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.

12c5104v

(Dec. 22, 2017, P.L.1249, No.78, eff. 60 days)

2017 Amendment. See section 7 of Act 78 in the appendix to this title for special provisions relating to applicability.

Cross References. Section 5104 is referred to in sections 5103, 5108, 5109 of this title.

12c5105s