Ripped off by an LLC--There is Still Hope
- Joseph "Jody" LaFleur

- Oct 24, 2023
- 2 min read
The Texas Uniform Fraudulent Transfer Act (TUFTA) is a state law in Texas that addresses fraudulent transfers of assets and property. It is based on the Uniform Fraudulent Transfer Act (UFTA), which is a model law created by the Uniform Law Commission to provide a consistent legal framework for dealing with fraudulent transfers of assets.
The Texas version of the UFTA, or TUFTA, provides a set of rules and procedures for creditors to challenge transfers of assets made by debtors with the intent to defraud, hinder, or delay their creditors. These transfers could include, but are not limited to, gifts, sales, or other dispositions of property. The goal of TUFTA is to prevent debtors from attempting to shield their assets from creditors by fraudulent means.
Some key provisions and concepts commonly found in the Texas Uniform Fraudulent Transfer Act include:
Fraudulent intent: TUFTA allows creditors to challenge transfers of assets if they can demonstrate that the debtor made the transfer with the actual intent to defraud, hinder, or delay creditors.
Constructive fraud: In cases where fraudulent intent is not proven, TUFTA provides for "constructive fraud," allowing creditors to challenge transfers if certain conditions are met. For example, if a debtor transferred assets without receiving reasonably equivalent value in return and was insolvent at the time, this could be considered constructive fraud.
Remedies: If a transfer is deemed fraudulent under TUFTA, creditors may seek various remedies, such as avoiding the transfer (restoring the assets to the debtor's estate), attaching a lien on the transferred property, or obtaining a money judgment against the transferee.
Statute of limitations: TUFTA includes a statute of limitations that sets a time limit on when a creditor can bring a fraudulent transfer claim.
It's important to consult with legal counsel experienced in Texas law when dealing with potential fraudulent transfers and understanding how TUFTA applies in specific situations. Laws can change over time, so the current text and provisions of TUFTA may differ from those in place at my last knowledge update in September 2021.



Comments