Several years ago, I published this article titled "The fraudulent-transfer risk in asset acquisitions and investments with financially distressed parties in the United States": https://www.tandfonline.com/doi/abs/10.1080/17521440.2010.11428097. This law has deep historical roots. As I said in this article:
"The law traces its origin to theStatute of 13 Elizabeth in the sixteenth century. Today the law exists in two forms in the US: as the fraudulent transfer provisions of the federal Bankruptcy Code and as fraudulent transfer statutes in all fifty states and the District of Columbia. In the states, the law is reasonably uniform. In 1918, the National Commission on Uniform State Laws (NCUSL) promulgated the model Uniform Fraudulent Conveyance Act (UFCA). In 1978, Congress enacted the federal Bankruptcy Code, whose provisions include section 548, a self-contained fraudulent transfer statute, and section 544, which incorporates by reference any pertinent state fraudulent transfer statute otherwise available to the creditors. In 1984, the NCUSL promulgated the Uniform Fraudulent Transfer Act (UFTA) in an effort to update and harmonize state law with Bankruptcy Code section 548. Most states have now adopted the UFTA, but a few, including New York, retain the UFCA."
Both sets of laws provide for liability in cases of either actually fraudulent transfers or constructively fraudulent transfers.. . . .it authorizes recovery by a bankruptcy trustee or an unpaid creditor of a debtor of transfers by that business entity or by an individual of property when it or s/he is insolvent or is rendered insolvent or is in an equivalent state of financial distress . . . . this almost ancient law is alive and well today. . . if the reader has any questions about this law, contact a bankruptcy lawyer!