Issue: What is necessary to establish an ‘antecedent debt’ under the Uniform Fraudulent Transfer Act?
|Area of Law:||Bankruptcy & Creditors Rights|
|Keywords:||Antecedent debt; Transfer|
|Cited Cases:||615 F. Supp. 2d 963|
“Antecedent debt” means nothing more than debt that exists before a transfer. Elliot & Callan v. Crofton, 615 F. Supp. 2d 963, 968 (D. Minn. 2009). To show that a debt was antecedent to a transfer, the plaintiff must establish that, prior to the transfer, the transferor was legally bound to pay the debt; thus, establishing that a debt was antecedent will require showing when the debt was incurred and when the transfer occurred. 26 Causes of Action 773, Cause of Action to Set Aside or Recover for Fraudulent Transfer or Obligation Under Uniform Fraudulent Transfer Act § 10 (1991 & Supp. 2010) (“COA”) (citing cases).