When a debtor fraudulently transfers property to avoid collection of a judgment, Arizona allows a creditor to recover from the beneficiary of the transfer.
Many attorneys know they can file a lawsuit to recover a fraudulent transfer, but there is often a faster and cheaper way. Arizona law also allows a creditor to garnish the beneficiary of a fraudulent transfer. A.R.S. § 44-1007(A). If a creditor has a judgment against the debtor, the court may levy execution on the asset fraudulently transferred. A.R.S. § 44-1007(B).
Fraudulent transfer under A.R.S. § 44-1005 does not require proof of intent to defraud, or even proof of intentional wrongdoing. A transfer is fraudulent if a creditor’s claim existed before the transfer and the debtor made the transfer: 1) without receiving reasonably equivalent value in exchange for the transfer, and 2) the debtor was insolvent at that time or became insolvent as a result of the transfer. A.R.S. § 44-1005(A). “A debtor who is not paying his debts as they become due is presumed to be insolvent.” A.R.S. § 44-1002(B). If you have a judgment and your debtor is hiding assets, experienced attorneys can help you recover what you’re owed.
The attorneys at Windtberg & Zdancewicz, PLC provide clients with experienced legal representation in all litigation and bankruptcy matters. We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases. If you need assistance with your collection matters, please contact us at (480) 584-5660.