Whether they are devious, desperate, or dishonest, some debtors trying to appear judgment-proof, will fraudulently conceal assets through some third-party transfer. In California, the four years from the date of a voidable transfer to undo it. If the transaction remains undiscovered until more than four years later, creditors still have one year to undo it, provided that no more than seven years have passed since the transfer was made or the obligation was incurred.
California law makes it a crime to fraudulently sell, convey, assign, or conceal property with the intent to defraud, hinder, or delay a creditor of its rights, claims, or demands. This crime is a misdemeanor, punishable by a $1,000 fine or up to one year in jail or both. If the property is stock in trade, such as the equipment of a business, with a value of greater than $250, then the crime is a felony, which presents the possibility of one year of jail time.
The attorneys at Glass & Goldberg in California provide high quality, cost-effective legal services and advice for clients in all aspects of commercial compliance, business litigation, and transactional law. Call us at (818) 888-2220, send an email inquiry to info@glassgoldberg.com or visit us online at glassgoldberg.com to learn more about the firm and to sign up for future newsletters.