HB181 Alabama 2018 Session

Summary

Primary Sponsor

Matt Fridy

Republican

Session

Regular Session 2018

Title

Alabama Uniform Voidable Transfers Act, adopted, creditors, procedures to reach assets transferred to prevent seizure established, Secs. 8-9B-1 to 8-9B-17, inclusive, added

Summary

HB 181 would replace Alabama's Uniform Fraudulent Transfers Act with the Uniform Voidable Transactions Act for transfers after January 1, 2019, updating how creditors can reach assets moved to avoid debts.

What This Bill Does

It replaces the Uniform Fraudulent Transfers Act with the Uniform Voidable Transactions Act for transfers after January 1, 2019, updating rules on when a transfer can be avoided to pay debts. It defines terms like debtor, creditor, asset, transfer, insider, and affiliate, and sets that a transfer may be voidable if the debtor tried to hinder creditors or did not receive reasonably equivalent value, especially when insolvent. Creditors can seek remedies such as undoing the transfer, attaching the asset, or getting injunctions or a receiver, while good-faith transferees may have defenses. The law distinguishes post-2019 transfers from pre-2019 transfers, which remain under the old act.

Who It Affects

• Debtors and their business arrangements (including insiders and affiliates): transfers may be voidable if aimed at defrauding creditors or lacking value, and the act applies to transfers after 2019.
• Creditors and transferees (including lenders and buyers): creditors can pursue remedies to recover assets; good-faith transferees have certain protections.

Key Provisions

• Adopts the Alabama Uniform Voidable Transactions Act, replacing the Uniform Fraudulent Transfers Act for post-2019 transfers.
• Defines key terms including affiliate, asset, claim, creditor, debt, debtor, insider, lien, transfer, and series organization.
• Provides when a transfer is voidable as to present or future creditors and as to present creditors, including lack of reasonably equivalent value and insolvency.
• Outlines creditor remedies such as avoidance of the transfer, attachment, injunctions, and receivership.
• Specifies defenses and protections for good-faith transferees and certain exceptions for secured transactions and foreclosures.
• Applies to transfers made on or after January 1, 2019; transfers before that date remain governed by the previous act; series organizations are treated as separate entities for purposes of the act.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Property, Real and Personal