HB181 Summary

• Adopts the Alabama Uniform Voidable Transactions Act to replace the existing Uniform Fraudulent Transfers Act (UFTA) for transactions occurring after January 1, 2019.

• Establishes procedures allowing creditors to void or reach assets transferred by debtors with actual intent to defraud, or transferred without reasonably equivalent value when the debtor was insolvent or engaged in undercapitalized business.

• Creates different timelines for creditor claims: 10 years for real property transfers, 6 years for personal property transfers, and 1-4 years depending on whether creditor claims arose before or after the transfer.

• Provides remedies including transfer avoidance, attachment of transferred assets, receiver appointment, and execution on transferred property, while protecting good-faith transferees who gave reasonably equivalent value.

• Applies to transfers made on or after January 1, 2019, with the prior UFTA continuing to govern transfers made before that date.