Practical Law Glossary Item 7-382-3893 (Approx. 2 pages)
Uniform Fraudulent Transfer Act (UFTA)
A model Act adopted in 1984 to replace the Uniform Fraudulent Conveyance Act (UFCA). The UFTA has been enacted in 45 states (including Delaware and New York), the District of Columbia, and the US Virgin Islands. While there are certain differences, both the UFTA and the UFCA share the same underlying principle that title to assets conveyed to a third party for the purpose of placing such assets beyond the reach of creditors is fraudulent. Both statutes provide creditors with a remedy when debtors hide or transfer assets that would otherwise be available to satisfy legitimate debts.
On July 16, 2014, the Uniform Law Commission adopted amendments to the UFTA, which, among other things, rename the UFTA as the Uniform Voidable Transactions Act (UVTA).