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

Terms Used In Alabama Code 8-9B-6

  • claim for relief: means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured and specifically shall include the nonpayment of child support pursuant to a court order. See Alabama Code 8-9B-2
  • Creditor: means a person that has a claim. See Alabama Code 8-9B-2
  • Debt: means liability on a claim. See Alabama Code 8-9B-2
  • Debtor: means a person that is liable on a claim. See Alabama Code 8-9B-2
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Insider: includes :
    (i) if the debtor is an individual:
    (A) a relative of the debtor or of a general partner of the debtor;
    (B) a partnership in which the debtor is a general partner;
    (C) a general partner in a partnership described in clause (B); or
    (D) a corporation of which the debtor is a director, officer, or person in control;
    (ii) if the debtor is a corporation:
    (A) a director of the debtor;
    (B) an officer of the debtor;
    (C) a person in control of the debtor;
    (D) a partnership in which the debtor is a general partner;
    (E) a general partner in a partnership described in clause (D); or
    (F) a relative of a general partner, director, officer, or person in control of the debtor;
    (iii) if the debtor is a partnership:
    (A) a general partner in the debtor;
    (B) a relative of a general partner in, a general partner of, or a person in control of the debtor;
    (C) another partnership in which the debtor is a general partner;
    (D) a general partner in a partnership described in clause (C); or
    (E) a person in control of the debtor;
    (iv) an affiliate, or an insider of an affiliate as if the affiliate were the debtor; and
    (v) a managing agent of the debtor. See Alabama Code 8-9B-2
  • Transfer: means every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset, and includes payment of money, release, lease, license, and creation of a lien or other encumbrance. See Alabama Code 8-9B-2
(b) A transfer made by a debtor is voidable as to a creditor whose claim arose before the transfer was made if the transfer was made to an insider for an antecedent debt, the debtor was insolvent at that time, and the insider had reasonable cause to believe that the debtor was insolvent.
(c) Subject to Section 8-9B-3(b), a creditor making a claim for relief under subsection (a) or (b) has the burden of proving the elements of the claim for relief by a preponderance of the evidence.
  Previous section
Next section  
 Chapter 9B Contents