August 20, 2019

HB 14-1302: Providing Additional Judicial Remedy for Creditors When Debtor Fraudulently Transfers Property

On March 4, 2014, Rep. John Buckner and Sen. Mike Johnston introduced HB 14-1302 – Concerning the Addition of a Judgment Against a Debtor or Transferee who Acts with Actual Intent as an Available Remedy for a Creditor in a Fraudulent Transfer Action. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The bill allows a creditor to seek a judgment in a fraudulent transfer action for 1.5 times the value of the asset transferred or for 1.5 times the amount necessary to satisfy the creditor’s claim, whichever is less, together with the creditor’s actual costs, against any debtor or transferee who acts with actual intent to hinder, delay, or defraud a creditor, either alone or in conspiracy with another. The bill also specifies that a judgment may not be entered against a person other than the debtor unless that person also acts with wrongful intent and that a judgment may not be entered unless a court of competent jurisdiction enters or has entered a judgment or order establishing the validity of the creditor’s claim against the debtor.

The bill has passed 3rd Reading in both the House and Senate and is headed to the governor’s desk for action.

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