Pennsylvania § 5104 Transfer or obligation voidable as to present or future creditor

Pennsylvania Statutes

§ 5104 — Transfer or obligation voidable as to present or future creditor

Pennsylvania § 5104

Title 12COMMERCE AND TRADE

PartPART IV

Ch. 51VOIDABLE TRANSACTIONS

This text of Pennsylvania § 5104 (Transfer or obligation voidable as to present or future creditor) is published on Counsel Stack Legal Research, covering Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

12 Pa. Cons. Stat. § 5104 (2026).

Text

(a)General rule.--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:

(1)with actual intent to hinder, delay or defraud any creditor of the debtor; or

(2)without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor:

(i)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; or

(ii)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 be

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(a) General rule.--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:

(1) with actual intent to hinder, delay or defraud any creditor of the debtor; or

(2) without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor:

(i) 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; or

(ii) 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.

(b) Certain factors.--In determining actual intent under subsection (a)(1), consideration may be given, among other factors, to whether:

(1) the transfer or obligation was to an insider;

(2) the debtor retained possession or control of the property transferred after the transfer;

(3) the transfer or obligation was disclosed or concealed;

(4) before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit;

(5) the transfer was of substantially all the debtor's assets;

(6) the debtor absconded;

(7) the debtor removed or concealed assets;

(8) 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;

(9) the debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred;

(10) the transfer occurred shortly before or shortly after a substantial debt was incurred; and

(11) the debtor transferred the essential assets of the business to a lienor who transferred the assets to an insider of the debtor.

(c) Burden of proof.--A creditor making a claim for relief under subsection (a) has the burden of proving the elements of the claim for relief by a preponderance of the evidence.

Legislative History

(Dec. 22, 2017, P.L.1249, No.78, eff. 60 days) 2017 Amendment.See section 7 of Act 78 in the appendix to this title for special provisions relating to applicability. Cross References.Section 5104 is referred to in sections 5103, 5108, 5109 of this title.