(a) A transfer made or obligation incurred by a debtor is fraudulent 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:

Terms Used In Hawaii Revised Statutes 651C-4

  • Asset: means property of a debtor but does not include:

    (1) Property to the extent that it is encumbered by a valid lien;

    (2) Property to the extent that it is generally exempt under nonbankruptcy law; or

    (3) An interest in property held in tenancy by the entireties to the extent that it is not subject to process by a creditor holding a claim against only one tenant. See Hawaii Revised Statutes 651C-1

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Claim: 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. See Hawaii Revised Statutes 651C-1
  • Creditor: means a person who has a claim against a debtor. See Hawaii Revised Statutes 651C-1
  • Debt: means liability on a claim. See Hawaii Revised Statutes 651C-1
  • Debtor: means a person against whom a creditor has a claim. See Hawaii Revised Statutes 651C-1
  • Insider: includes :

    (1) 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 subparagraph (B); or

    (D) A corporation of which the debtor is a director, officer, or person in control;

    (2) 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 subparagraph (D); or

    (F) A relative of a general partner, director, officer, or person in control of the debtor;

    (3) If the debtor is a partnership:

    (A) A general partner of the debtor;

    (B) A relative of a general partner in, of a general partner of, or of 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 subparagraph (C); or

    (E) A person in control of the debtor;

    (4) An affiliate, or an insider of an affiliate as if the affiliate were the debtor; and

    (5) A managing agent of the debtor. See Hawaii Revised Statutes 651C-1

  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Property: means anything that may be the subject of ownership. See Hawaii Revised Statutes 651C-1
  • 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 a payment of money, a release, a lease, and the creation of a lien or encumbrance. See Hawaii Revised Statutes 651C-1
(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:

(A) 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
(B) 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) 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 had 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 was sued or threatened with suit;
(5) The transfer was of substantially all the debtor’s assets;
(6) The debtor had absconded;
(7) The debtor had 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 had occurred shortly before or shortly after a substantial debt was incurred; and
(11) The debtor had transferred the essential assets of the business to a lienor who had transferred the assets to an insider of the debtor.
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