KRS 378A.040: Transfer or obligation voidable as to present or future creditor.

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

(a) With actual intent to hinder, delay, or defraud any creditor of the debtor; or

(b) Without receiving a reasonably equivalent value in exchange for the transfer

or obligation, and the debtor:

1. Was engaged or was about to engage in a business or a transaction fo r

which the remaining assets of the debtor were unreasonably small in

relation to the business or transaction; or

2. 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.

(2) In determining actual intent under subsection (1)(a) of this section, consideration

may be given, among other factors, to whether:

(a) The transfer or obligation was to an insider;

(b) The debtor retained possession or control of the p roperty transferred after the

transfer;

(c) The transfer or obligation was disclosed or concealed;

(d) Before the transfer was made or obligation was incurred, the debtor had been

sued or threatened with suit;

(e) The transfer was of substantially all the debtor's assets;

(f) The debtor absconded;

(g) The debtor removed or concealed assets;

(h) 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;

(i) The debtor was insolvent or became insolvent shortly after the transfer was

made or the obligation was incurred;

(j) The transfer occurred shortly before or shortly after a substantial debt was

incurred; and

(k) The debtor transferred the essential assets of the business to a lienor that

transferred the assets to an insider of the debtor.

(3) A creditor making a claim for relief under subsection (1) of this section has the

burden of proving the elements of the claim for relief by a preponderance of the

evidence.