Full text of Utah Utah Code § 25-6-202 — Voidable transfer or obligation -- Present or future creditor -- Determination of intent -- Burden of proof., with citation guidance and answers to common questions.
§ 25-6-202. Voidable transfer or obligation -- Present or future creditor -- Determination of intent -- Burden of proof.
Effective 5/9/2017
25-6-202.
Voidable transfer or obligation -- Present or future creditor -- Determination of intent -- Burden of proof.
| (1) |
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:
| (a) |
with actual intent to hinder, delay, or defraud any creditor of the debtor; or |
| (b) |
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. |
|
|
| (2) |
To determine "actual intent" under Subsection (1)(a), consideration may be given, among other factors, to whether:
| (a) |
the transfer or obligation was to an insider; |
| (b) |
the debtor retained possession or control of the property transferred after the transfer; |
| (c) |
the transfer or obligation was disclosed or concealed; |
| (d) |
before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit; |
| (e) |
the transfer was of substantially all the debtor's assets; |
| (f) |
the debtor absconded; |
| (g) |
the debtor removed or concealed assets; |
| (h) |
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; |
| (i) |
the debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred; |
| (j) |
the transfer occurred shortly before or shortly after a substantial debt was incurred; and |
| (k) |
the debtor transferred the essential assets of the business to a lienor that transferred the assets to an insider of the debtor. |
|
| (3) |
A creditor making a claim for relief under Subsection (1) has the burden of proving the elements of the claim for relief by a preponderance of the evidence. |
Renumbered and Amended by Chapter
204, 2017 General Session
Frequently Asked Questions About Utah § 25-6-202
What does Utah Code § 25-6-202 cover?
Section 25-6-202 ("Voidable transfer or obligation -- Present or future creditor -- Determination of intent -- Burden of proof.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Utah § 25-6-202?
A common citation format is "Utah Code § 25-6-202" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Utah law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.
How does Utah § 25-6-202 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.
