If you run any sort of business, it is almost inevitable that someday, you will have to attempt to collect on an unpaid debt. Unpaid debts present numerous challenges for creditors. One such challenge is when a debtor claims not to have the funds to pay their unpaid debts.
At the Law Offices of Alan M. Cohen & Associates LLC, our commercial collections attorneys have more than 50 years of combined experience helping our commercial clients in Massachusetts collect on their unpaid debts. If you are dealing with a suspicious debtor, our ethical commercial collections attorneys are relentless about pursuing unpaid debts.
Why is it important to recognize a fraudulent conveyance?
It is important to be able to identify when a debtor may be participating in a fraudulent conveyance. Is a debtor really out of cash? Or did they just move assets around to make it look like they are out of cash? Recognizing illegal actions is crucial for safeguarding financial interests and ensuring your debts get paid.
What is a fraudulent conveyance?
A fraudulent conveyance occurs when a debtor transfers assets to another party with the intent to hinder, delay, or defraud creditors. These actions are not only unethical but illegal and strictly forbidden under Massachusetts laws. Fraudulent conveyances also pose a direct threat to your ability to collect what you’re owed. Common indicators of a fraudulent conveyance include sudden asset transfers to family or friends and selling valuable assets for less than their market value.
What is a legitimate asset protection strategy?
Legitimate asset protection strategies include:
- Obtaining appropriate insurance policies
- Structuring a business as a corporation or LLC to limit personal liability
- Maximizing contributions to retirement accounts
- Strategic planning
Insurance policies can safeguard assets against unforeseen events. Structuring a business to limit personal liability is legal. Retirement accounts are generally protected from creditors, so contributions to a retirement account are legitimate transfers.
The leverage of identifying fraudulent conveyances
Identifying a debtor’s fraudulent conveyances can give you a lot of leverage when moving forward to collect your unpaid debt, including:
- Asset recovery: Spotting fraudulent conveyances early allows you to take legal action to recover transferred assets before they disappear.
- Legal leverage: Demonstrating fraudulent intent strengthens your position in court, increasing your chances of a favorable judgment.
- Financial protection: Prevents significant financial losses by ensuring that debtors cannot easily evade their obligations.
- Deterrence: By taking a stand against fraudulent conveyances, you send a clear message that deceptive practices will not be tolerated, discouraging future misconduct.
- Business integrity: Protecting your interests through ethical and legal means maintains your business’s reputation and stability.
With over 50 years of combined experience, our firm is dedicated to helping creditors collect their unpaid debts, which includes identifying and challenging fraudulent conveyances. We fight aggressively to recover assets and relentlessly fight on your behalf to recover the payments you’re entitled to.
Take action to protect your interests
Identifying fraudulent conveyances is a critical skill for any creditor. Our seasoned commercial collections attorneys are ready to assist you in protecting your financial interests and holding debtors accountable. Don’t let deceptive practices undermine your business.
Contact us today to discuss how we can help you identify and address fraudulent conveyances. Call us at 508-763-6604 or send an inquiry through our online form. Let us fight to get you paid.