Fraudulent Conveyances
Fraudulent Conveyances Beware: Your Legal Champion is Here
Lawsuits and regulatory actions are some of the most significant threats facing businesses. Many times, two new entities are created to avoid potential liability. One will transfer and hold the most valuable assets. A second entity holds all the liabilities and deals with the legal fallout. Sometimes, the parent company or individual could be filing for bankruptcy and want to protect their assets from creditors.
These actions are considered fraudulent conveyances, and the transfer occurs after some legal action occurs. The parent company or individual wants to limit liability and fallout by doing these actions. Texas law prohibits fraudulent conveyances, but numerous businesses and individuals continue with them.
A skilled fraudulent conveyance attorney in Texas will help to guide you when this happens. Here is why you need us to prevent and address these situations when they arise.
What are Fraudulent Conveyances?
Fraudulent conveyances are known as fraudulent transfers. They are carried out to hinder, defraud, or delay creditor actions. These transactions involve transferring property and money within the same corporate family. The idea is to avoid paying the claims of creditors against these assets.
Fraudulent conveyances are classified into two different categories.
Constructive Fraud
Constructive fraud is when there is no intent to deceive, but the action is designed to stop or prevent creditors. It occurs when the debtor transfers assets and does not receive the equivalent value. The idea is to lower the value to make it harder for creditors to claim these assets.
Actual Fraud
Actual fraud is when the debtor is trying to intentionally hide assets by transferring them. The intention is to defraud creditors by blatantly hiding assets from impending legal actions.
We recommend speaking with a fraudulent conveyance lawyer in Texas about your situation. The Weisblatt Law Firm has decades of experience handling these situations, and we will stand up for your rights. Contact us at (713) 666-1981 to schedule your free phone consultation. Time is of the essence to take legal action and prevent these situations.
The Dangers of Fraudulent Conveyances
Fraudulent conveyances are significant threats to your business. Some of the possible threats include:
Instability
Any assets that are fraudulently transferred erode your business’s financial stability. Creditors are legitimately owed these debts, making them harder to collect. These actions could cause financial distress, leading to bankruptcy.
Damages to Reputation
Your business’s reputation is extremely valuable, and you always want to protect it. The accusations of fraudulent conveyances could damage this image and make it difficult to attract investors and customers.
Legal Consequences
Fraudulent conveyance could have legal implications for your business. Creditors can take aggressive actions to recover their outstanding debts, and you could face criminal charges and civil penalties.
Unsuccessful Asset Protection
Those businesses that engage in fraudulent conveyances are foolishly attempting to protect their assets. These tactics create legal challenges, proving ineffective in addressing their long-term issues.
A skilled fraudulent conveyance lawyer in Texas will give you the knowledge and guidance you need to avoid these situations.
Strategies for Fraudulent Conveyances
Prevention is one of the most effective strategies for addressing fraudulent conveyances. We use different steps that minimize risks and protect your interests.
Due Diligence
We conduct the due diligence before you enter a transaction. Our team ensures that the transaction is documented, transparent, and fair.
Legal Counsel
We recommend having a skilled Texas fraudulent conveyance attorney on retainer who understands the complexities of these situations. Our guidance offers effective prevention and addresses potential issues when they arise.
Record Keeping
You always want to maintain transparent and clear financial records to show the transaction’s legitimacy. It reduces future questions and helps all parties fully understand what is happening.
Limit Asset Stripping
Asset stripping is when specific assets are transferred from companies facing financial challenges. We prevent these situations by implementing effective safeguards, monitoring, and acting fast when they arise.
Legal Compliance
Compliance with all local, state, and federal regulations is a necessity. Our team ensures that all transactions are legal so you can avoid the consequences of engaging in fraudulent conveyances.
A skilled fraudulent conveyance attorney looks out for you and helps prevent these situations. We have the knowledge and experience with these cases to ensure your business is fully protected.
Why Choose Us?
Our skilled attorneys can help you with fraud conveyances. We offer invaluable support in numerous ways, including.
Knowledge
You work with a skilled attorney who knows the law and will guide you through these situations. Our knowledge gives you practical legal advice that is customized to your situation.
Identification of Fraudulent Conveyances
The primary role of your attorney is to help identify fraudulent conveyances from the past and present. We identify possible red flags that could go unnoticed and help you to address them.
Protecting Your Interests
After identifying a fraudulent conveyance, we work with you to protect your interests. It could involve taking legal action to recover these assets and stop all fraudulent activities.
Customized Legal Strategies
Our attorneys know the various legal strategies to prevent and combat fraudulent conveyances. We help you to navigate the complexities and work to create favorable outcomes.
Addressing Future Issues
Our team assists you in implementing preventive measures to decrease the risk of fraudulent conveyances in the future. We analyze your contracts, business practices, and financial transactions so everything is fully compliant.
Negotiations
Sometimes, it could be favorable to negotiate a settlement with those parties and creditors involved in fraudulent conveyances. Our team will guide you through these negotiations so we can create favorable solutions.
Experience
You work with an attorney who has years of experience handling these cases. We put this experience to work for you to ensure your rights are protected. While no two cases are the same, there are similarities, and we use this experience to ensure everything goes smoothly.
Addressing fraudulent conveyances requires working with skilled professionals who know what to do. At the Weisblatt Law Firm, we can help you deal with these situations to protect your interests. Contact us at (713) 666-1981 to schedule your free phone consultation with a skilled fraudulent conveyance attorney.
FAQs
What is a Fraudulent Conveyance?
A fraudulent conveyance is a financial transaction where the assets are transferred to delay, stop, or defraud creditors from taking action.
What are the Signs of a Fraudulent Conveyance?
Fraudulent conveyances have several red flags, including selling assets below their fair market value, transferring assets before taking on large debts, and transferring assets to subsidiaries or family members. The basic idea is to hide these assets from creditors by moving them away from their current owners.
Are Legitimate Business Transactions Mistaken for Fraudulent Conveyances?
Sometimes, legitimate business transactions look like fraudulent conveyances. However, there are different legal transactions performed by the business or individuals. We recommend speaking with a skilled fraudulent conveyance attorney about your situation. Our team will identify if the transaction is legitimate and guide you through the process.
What are the Legal Consequences of Engaging in Fraudulent Conveyances?
Those entities and individuals involved in fraudulent conveyances face various penalties, including criminal charges, civil penalties, and the courts voiding out the transfer of these assets.
What are Ways to Protect My Business from Fraudulent Conveyances?
We recommend speaking with a skilled fraudulent conveyance attorney about your situation. Our team will conduct due diligence, maintain legal compliance, and transparent financial records. The actions of a skilled attorney will protect your business and reduce the chance of these transfers happening to you.
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio
