Page 173 - Judgment Enforce Course

Judgment Enforcement – The Step-by-Step Course

2. Oh no! The JD transferred his property!

Believe it or not, a lot of JD’s are dishonest. And, during the lawsuit or after, they may
transfer their home into someone else’s name, or their car, or something else.

It’s illegal, obviously. And if you can show a fraudulent transfer, then you can ask the
court to make the JD put the assets back in his name, so you can take them.

But how do you prove a fraudulent transfer? Good question. Using your databases, it’s
often very clear. Then, the court will look to the actions of the JD to see if “smells” like a
fraudulent transfer. Here are the questions you and the court can ask:

➢ Was the transfer made to a friend, relative, or other “insider?”

➢ Did the JD transfer the property, but actually retain possession of it? (For example, he
transfers the title of his car into his girlfriend’s name but continues to drive it.)

➢ Did he conceal the transfer?
FRAUDULENT
➢ Did the transfer occur when there was a threat of TRANSFER
a suit, during the suit, or afterward?
(OR, FRAUDULENT CONVEYANCE)
➢ Did the JD transfer all of his assets?
An attempt to avoid debt by
➢ How much did the JD receive for the transfer? transferring an asset to
Was it equivalent to the real value of the asset? another person or company.
➢ Did the transfer make the JD insolvent?

➢ Did the JD disappear after the transfer?

These are called the “badges of fraud.” Every court knows them. Every court has dealt
with them. Again, it’s a smell test. If it smells like old tuna, the court will know it. And it’s
not necessary to show all of these badges. One or two is often
enough. Stinky, stinky. THE BADGES OF

Something most people don’t know: The transfer can be FRAUD
“fraudulent” even if it came a year or more before the “cause
of action” (the event that led to the suit).

For example: Let’s say that tomorrow I transfer my home into my son’s name. I’m not
trying to evade a judgment. I’m just doing it because I love him (and I’m getting old).

Then, 2 years from now, I’m in an auto accident, and I’m liable. Yikes! I get sued, and I
lose.

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