Colorado § 38-8-108 - Remedies of creditors.

§ 38-8-108. Remedies of creditors.

(1) In an action for relief against a transfer or obligation under this article 8, a creditor, subject to the limitations in section 38-8-109, may obtain:

(a) Avoidance of the transfer or obligation to the extent necessary to satisfy the creditor's claim;

(b) An attachment or other provisional remedy against the asset transferred or other property of the transferee in accordance with the procedure prescribed by the Colorado rules of civil procedure;

(c) With respect to a transfer made or obligation incurred that is voidable under section 38-8-105 (1)(a), a judgment for one and one-half the value of the asset transferred or for one and one-half the amount necessary to satisfy the creditor's claim, whichever is less, together with the creditor's actual costs; except that a judgment entered against a person under this subsection (1)(c) is in lieu of, not in addition to, a judgment against the same person under section 38-8-109 (2). A judgment may not be entered pursuant to this subsection (1)(c) against a person other than the debtor unless that person also acts with wrongful intent as defined in section 38-8-105 (1)(a); otherwise, judgment for money damages against a person other than the debtor may be entered only as provided in section 38-8-109. A judgment may not be entered under this subsection (1)(c) unless a court of competent jurisdiction enters or has entered a judgment or order establishing the validity of the creditor's claim against the debtor.

(d) Subject to applicable principles of equity and in accordance with applicable rules of civil procedure:

(I) An injunction against further disposition by the debtor or a transferee, or both, of the asset transferred or of other property;

(II) Appointment of a receiver to take charge of the asset transferred or of other property of the transferee; or

(III) Any other relief the circumstances may require.

(2) If a creditor has obtained a judgment on a claim against the debtor, the creditor, if the court so orders, may levy execution on the asset transferred or its proceeds.

Source: L. 91: Entire article added, p. 1687, § 1, effective July 1. L. 2014: (1) amended, (HB 14-1302), ch. 143, p. 489, § 1, effective May 2. L. 2025: IP(1) and (1)(c) amended, (SB 25-133), ch. 57, p. 240, § 7, effective August 6.

Editor's note - Colorado legislative change: This section was numbered as section 7 in the uniform act.

ANNOTATION

Section 38-8-109 (2) does not provide an additional remedy to creditors but instead limits the remedy provided under subsection (1)(a) of this section by limiting the creditor's recovery in an action to avoid a fraudulent transfer to the lesser of the adjusted value of the transferred asset or the amount of the creditor's claim. Because a bankruptcy trustee thus has the power to recover the same amount sought by the plaintiff creditor for the benefit of all creditors and because allowing individual creditors to file actions for recovery would interfere with the bankruptcy estate and the equitable distribution scheme dependent upon it, the plaintiff creditor lacked standing. Summers v. Perkins, 81 P.3d 1141 (Colo. App. 2003).