684.4 Transfer or obligation voidable as to present or future creditor.
1. A transfer made or obligation incurred by a debtor is voidable as to a creditor, whether the creditor’s claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation under any of the following circumstances:
a. With actual intent to hinder, delay, or defraud any creditor of the debtor.
b. Without receiving a reasonably equivalent value in exchange for the transfer or obligation, if either of the following applies:
(1) The debtor was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction.
(2) The debtor intended to incur, or believed or reasonably should have believed that the debtor would incur, debts beyond the debtor’s ability to pay as they became due.
2. In determining actual intent under subsection 1, paragraph “a”, consideration may be given, among other factors, to whether any or all of the following apply:
a. The transfer or obligation was to an insider.
b. The debtor retained possession or control of the property transferred after the transfer.
c. The transfer or obligation was disclosed or concealed.
d. Before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit.
e. The transfer was of substantially all the debtor’s assets.
f. The debtor absconded.
g. The debtor removed or concealed assets.
h. The value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred.
i. The debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred.
j. The transfer occurred shortly before or shortly after a substantial debt was incurred.
k. The debtor transferred the essential assets of the business to a lienor that transferred the assets to an insider of the debtor.
3. A creditor making a claim for relief under subsection 1 has the burden of proving the elements of the claim for relief by a preponderance of the evidence.
94 Acts, ch 1121, §8; 2016 Acts, ch 1040, §3, 15
Referred to in §684.3, 684.8, 684.9
2016 amendment applies to a transfer made or an obligation incurred, as provided in §684.6, on or after July 1, 2016;
2016 Acts, ch 1040, §15
Structure Iowa Code
Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES
Chapter 684 - VOIDABLE TRANSACTIONS
Section 684.4 - Transfer or obligation voidable as to present or future creditor.
Section 684.5 - Transfer or obligation voidable as to present creditor.
Section 684.6 - When transfer is made or obligation is incurred.
Section 684.7 - Remedies of creditors.
Section 684.8 - Defenses, liability, and protection of transferee or obligee.
Section 684.9 - Extinguishment of claim for relief.
Section 684.10 - Governing law.
Section 684.11 - Application to series organization.
Section 684.12 - Supplementary provisions.
Section 684.13 - Uniformity of application and construction.
Section 684.14 - Relation to Electronic Signatures in Global and National Commerce Act.