Winning a judgment against a debtor is a crucial step in recovering the money you are owed. Collecting that judgment can be a different challenge altogether—especially if the debtor attempts to hide their assets. Some debtors move their property or money to family members, friends, or business entities to avoid paying creditors. This tactic, known as fraudulent conveyance, is illegal, and creditors have legal avenues to fight back.
Learn how fraudulent conveyance works, how to uncover hidden transfers, and how Attorney Dylan Wilbanks can help you enforce your judgment collection in Georgia.
What is Fraudulent Conveyance in Judgment Collection?
Fraudulent conveyance, also called fraudulent transfer, occurs when a debtor deliberately moves assets out of their name to avoid paying a valid debt. These transfers can happen before or after a creditor wins a judgment and are intended to shield money or property from collection efforts.
What Are Fraudulent Transfers?
After a judgment is finalized, a debtor may attempt to hide assets in a number of ways, including:
- A business owner transfers assets to a family member or shell company to avoid creditor claims.
- An individual sells a valuable property to a close friend for far below market value to keep it out of a creditor’s reach.
- A debtor suddenly gifts assets, such as vehicles or real estate, after receiving a court judgment.
Under Georgia law, fraudulent transfers can be reversed, allowing creditors to access hidden assets and enforce their judgments.
How to Prove Fraudulent Conveyance in Georgia
To challenge a fraudulent transfer, creditors must present evidence that the debtor intentionally moved assets to hinder, delay, or defraud them. Courts consider several factors when evaluating whether a transfer was fraudulent.
Common Signs of Fraudulent Transfers
- Lack of fair consideration – If a debtor transfers an asset without receiving adequate compensation, it raises suspicion.
- Close relationships – Transfers to family members or business partners are more likely to be fraudulent.
- Timing of the transfer – If the debtor moved assets shortly before or after a lawsuit or judgment, it may indicate fraud.
- Retention of control – If a debtor still uses or benefits from an asset after transferring it, courts may see the transfer as a sham.
- Multiple suspicious transactions – If the debtor has made several asset transfers in a short time, this may indicate an attempt to evade creditors.
How to Uncover Fraudulent Conveyance
Uncovering fraudulent conveyance requires a thorough investigation. Creditors and judgment collections lawyers use legal tools and investigative methods to track hidden assets.
Reviewing Public Records
Property deeds, vehicle registrations, business ownership records, and financial statements can reveal whether a debtor has transferred assets. These records often show when and to whom assets were transferred.
Subpoenaing Financial Documents
A judgment collections lawyer can issue subpoenas for bank statements, tax filings, and transaction records. These documents may expose suspicious transfers or hidden bank accounts.
Depositions and Testimonies
Debtors and their associates can be questioned under oath about asset transfers. If a debtor is caught providing false information, it strengthens a creditor’s case for reversing the fraudulent conveyance.
Working with Forensic Investigators
Forensic accountants and investigators can analyze financial records for inconsistencies, uncovering transactions designed to conceal wealth from creditors.
Legal Remedies for Fraudulent Transfers in Georgia
Once fraudulent conveyance is proven, creditors have legal options to recover assets and enforce judgment collection.
Filing a Lawsuit to Reverse the Transfer
Georgia law allows creditors to challenge fraudulent transfers in court. If successful, the court may reverse the transaction, restoring the asset to the debtor’s name so it can be used to satisfy the judgment.
Obtaining a Court Order to Seize the Asset
If an asset was fraudulently transferred, courts may authorize seizure of the property or its equivalent value to repay the debt.
Holding the Transferee Liable
In some cases, the person who received the fraudulent transfer may be held liable for the debt, especially if they knowingly participated in the scheme.
Why Should I Work with a Judgment Collections Lawyer from Georgia?
Proving fraudulent conveyance and enforcing a judgment requires legal knowledge, investigative skills, and persistence. A judgment collections lawyer can navigate the legal process and ensure creditors recover what they are owed.
Experience in Georgia Collections Law
Attorney Dylan Wilbanks understands Georgia’s fraudulent transfer laws and has experience litigating judgment enforcement cases in Athens, Jackson County, and surrounding areas.
Strategic Investigation & Asset Recovery
The Wilbanks Law Firm employs proven methods to uncover fraudulent transfers, including subpoenaing financial records and working with forensic investigators.
Efficient & Effective Judgment Enforcement
A collections attorney can take swift legal action to prevent debtors from hiding assets further and pursue remedies to recover your judgment as quickly as possible.
How the Wilbanks Law Firm Can Help
The Wilbanks Law Firm, based in Commerce, Georgia, specializes in judgment collection and fraudulent conveyance litigation. If you suspect a debtor has transferred assets to avoid paying you, Attorney Dylan Wilbanks can investigate and take legal action to enforce your judgment.
FAQs About Fraudulent Conveyance in Georgia
How long do I have to challenge a fraudulent transfer in Georgia?
Creditors have four years from the date they discover—or reasonably should have discovered—the fraudulent transfer to file a legal claim.
Can a debtor go to jail for fraudulent conveyance?
Fraudulent transfer is a civil matter, not a criminal one. However, if a debtor commits perjury or engages in other fraudulent activities, criminal penalties could apply.
What if the asset has already been sold?
If a fraudulently transferred asset has been sold, courts may order the debtor to compensate the creditor with the proceeds from the sale.
Can I collect attorney’s fees if I prove fraudulent conveyance?
In some cases, Georgia courts allow creditors to recover attorney’s fees if they prove fraudulent intent.
How do I get started with enforcing my judgment?
Contact the Wilbanks Law Firm to discuss your options for investigating fraudulent transfers and recovering your judgment.
Call the Wilbanks Law Firm for Help with Your Judgment Collection
If you’re struggling to collect a judgment due to fraudulent asset transfers, don’t wait to take action. Attorney Dylan Wilbanks has the experience and resources to uncover hidden assets and enforce your legal rights as a creditor.
Call (706) 510-0000 today, or fill out our contact form to get started.
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