California Codes, Civil Code - CIV, Division 4 — General Provisions, Part 2 — Special Relations of Debtor and Creditor, Title 2 — Void and Voidable Transfers and Undertakings, Chapter 1 — Uniform Voidable Transactions Act, Section 3439.05

(a) A transfer made or obligation incurred by a debtor is voidable as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor was insolvent at that time or the debtor became insolvent as a result of the transfer or obligation.

(b) A creditor making a claim for relief under subdivision (a) has the burden of proving the elements of the claim for relief by a preponderance of the evidence.

Notes

Allows a creditor whose claim predates a transfer or obligation to avoid it when the debtor received no reasonably equivalent value and was insolvent then or became insolvent because of the transaction. The creditor bears the burden of proving each required element by a preponderance of the evidence.

Use as reference

Lexinter.net | California Code, Civil Code - CIV § 3439.05 | https://laws.lexinter.net/codes/california/civil-code/division-4/part-2/title-2/chapter-1/section-3439-05

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