Issue: What is necessary for fraudulent transfer claim to be considered viable in Minnesota?
| Area of Law: | Bankruptcy & Creditors Rights |
| Keywords: | Fraudulent transfer claim; Right to payment |
| Jurisdiction: | Federal, Minnesota |
| Cited Cases: | None |
| Cited Statutes: | Minnesota Uniform Fraudulent Transfer Act § 513.45(b); Minn. Stat. § 513.41(3) |
| Date: | 02/01/2013 |
In order for a Bank to have a viable fraudulent transfer claim under § 513.45(b) of the Minnesota Uniform Fraudulent Transfer Act (MUFTA), the Bank must have a proper claim. A “claim” exists only if the creditor challenging the transfer had a “right to payment.” (citing Minn. Stat. § 513.41(3)). A “right to payment” means nothing more or less than an enforceable obligation, see id. (citing Cohen v. De la Cruz, 523 U.S. 213, 218 (1998)). See id. at 4 (citing United States v. Vanornum, 912 F.2d 1023, 1026 (8th Cir. 1990)).
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