Pursuing A Debt After A Fraudulent Conveyance
Last updated on May 28, 2026
When a company that owes you money tries to hide its assets, it can be quite frustrating. You should know that you have options for locating and collecting that money. At the Law Offices of Alan M. Cohen & Associates LLC, our attorneys have more than 60 years of combined legal experience peeling back the layers of a company’s transactions to find fraudulent conveyances that reveal a debtor’s hidden assets.
Read an example of how we stopped a debtor from using a fraudulent conveyance to avoid creditors, and we recovered past-due debt for our client.
What Is A Fraudulent Conveyance?
Under Massachusetts law, a debtor makes a fraudulent conveyance when they transfer money or an asset for the purpose of avoiding payment of the debt.
A common example is transferring title to an asset to a family member. On paper, it may appear that the debtor no longer owns that property, but in reality, they still control it. The goal is to move the asset outside of the creditor’s reach.
What Can You Do To Recover The Money You Are Owed?
You may still attempt to attach the transferred property to the debt, either before or after the court issues a judgment. You must show that the transfer was a sham intended to defraud you and not a legitimate payment or exchange for value.
Timing is key in these situations. When a debtor waits until a creditor is about to seize an asset to gift it to a friend or relative, the court will likely treat the transfer as suspect. The court will look at other factors, as well, such as:
- Whether the debtor still has control over the property
- Whether the debtor tried to hide the conveyance
- The relationship the debtor has with the transferee
- Whether the debtor received compensation for the transfer that matched its value
These are just a few of the many factors a court will consider under the law.
If the court rules in your favor, it may void the transaction completely. The law has defined rules for how and when a transaction may be voided and when the transferee could become liable for the debt. If your case is not appropriate for voiding the transaction, the court will find other ways to provide satisfaction.
What Is A Legitimate Asset Protection Strategy?
A legitimate asset protection strategy protects assets before legal or financial problems arise. It focuses on lawful planning, not hiding or moving assets after a claim exists. Proper planning helps avoid fraudulent conveyance issues and keeps asset transfers valid.
Common asset protection strategies include:
- Carrying appropriate insurance
- Forming a corporation or LLC to limit personal liability
- Contributing to protected retirement accounts
- Planning finances in advance
Insurance can cover unexpected losses. Business entities help separate personal and business risk. Retirement accounts often protect savings when people make contributions as part of long-term planning.
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, which can increase 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 60 years of experience, our firm is dedicated to helping creditors collect their unpaid debts, which includes identifying and challenging fraudulent conveyances. Our lawyers fight aggressively to recover assets and work relentlessly to secure the payments you deserve.
You Must Act Fast To Protect Your Interests
Fraudulent conveyance actions have a statute of limitations of four years from the time you knew or should have known about the fraudulent transfer. If you suspect such an action by one of your customers, you should not wait to pursue an action against them.
The experienced commercial collections attorneys at the Law Offices of Alan M. Cohen & Associates LLC have the knowledge and ability to follow up on these claims and pursue a judgment in your favor. Contact us to schedule an appointment to learn more by calling 508-763-6604 or reaching out online.