Code of Alabama
Ala. Code § 8-9A-5 (2026)
Transfers Fraudulent as to Present Creditors.
✓ official Alabama Legislature (ALISON) text, current July 2026
(a) A transfer made by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made if the debtor made the transfer without receiving a reasonably equivalent value in exchange for the transfer and the debtor was insolvent at that time or the debtor became insolvent as a result of the transfer.
(b) A transfer made by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made if the transfer was made to an insider for an antecedent debt and the debtor was insolvent at that time and the insider had reasonable cause to believe that the debtor was insolvent.
(Acts 1989, No. 89-793, p. 1585, §5.)
Notes of Decisions
Cited in 24
cases (5 in the last 5 years), 1994–2023 · leading case: SE Prop. Holdings, LLC v. Braswell, 255 F. Supp. 3d 1187 (S.D. Ala. 2017).
SE Prop. Holdings, LLC v. Braswell, 255 F. Supp. 3d 1187 (S.D. Ala. 2017). “' In Count Three, SEPH advances a claim of constructive fraudulent transfer, in violation of Alabama Code § 8-9A-5(a), predicated on an allegation that Braswell,was insolvent at the time of, or as a result of, the subject transfers.”
THOMPSON PROP. v. Birmingham Hide & Tallow, 897 So. 2d 248 (Ala. 2004). “Alternatively, the Partnerships argue that they are entitled to a JML under § 8-9A-5(a), a part of the AUFTA. That Code section provides: "A transfer made by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made if the debtor made the transfer…”
Aliant Bank v. Davis, 198 So. 3d 508 (Ala. Civ. App. 2015). “Code 1975, § 8-9A-4(b); McPherson Oil, supra. A constructive fraudulent transfer occurs when a debtor transfers assets to another without consideration, and the debtor was, or became, insolvent at the time of the transfer.”
Peacock Timber Transp., Inc. v. B.P. Holdings, LLC, 115 So. 3d 914 (Ala. 2012). “Therefore, we reject the premise of Blount’s statute-of-limitations argument raised below that Peacock’s AFTA claim was brought pursuant to § 8-9A-5. Our determination that Peacock’s claim is based on § 8-9A-4, not § 8-9A-5, is dis-positive of the statute-of-limitations issue.”
Andrews v. RBL, L.L.C. (In re Vista Bella, Inc.), 511 B.R. 163 (Bankr. S.D. Ala. 2014). “Ala.Code § 8-9A-5(a) deems transfers constructively fraudulent.”
McPherson Oil Co., Inc. v. Massey, 643 So. 2d 595 (Ala. 1994). “Under Ala.Code 1975, § 8-9A-5(a), a transfer made by a debtor is fraudulent as to a creditor, regardless of whether the creditor's claim arose before or after the transfer was made, if the debtor made the transfer with actual intent to hinder, delay, or defraud any creditor of…”
Premier Capital Funding, Inc. v. Earle (In Re Earle), 307 B.R. 276 (Bankr. S.D. Ala. 2002). “Any claim brought under § 8-9A-5(b) must be asserted within one year of the transfer.”
Int'l Mgmt. Grp., Inc. v. Bryant Bank, 274 So. 3d 1003 (Ala. Civ. App. 2018). “In reply, the Bank argued that the applicability of § 8-9A-5 was not a surprise to IMG and Carter because, although that particular statute had not been cited in the complaint, it had been specifically raised in its reply to IMG and Carter's response in opposition to the motion…”
Alexander v. Delong, Caldwell, Novotny, & Bridgers, LLC (In Re Terry Unif. Co.), 358 B.R. 429 (Bankr. M.D. Ala. 2006). “Trustee’s Claims Against Defendants to Avoid Fraudulent Conveyances The Trustee’s second claim against the Defendants is for fraudulent conveyances under AjlaCode § 8-9A-5 and Ga. Code Ann. § 18-2-74 , and the Trustee’s third claim is to avoid the fraudulent conveyances pursuant…”
Cox v. Hughes, 781 So. 2d 197 (Ala. 2000). “) Section 8-9A-5 carries forward the traditional rules concerning constructive fraud and sets forth the circumstances in which a transfer is constructively "fraudulent as to a creditor whose claim arose before the transfer.”
Int'l Mgmt. Grp., Inc. v. Bryant Bank, 274 So. 3d 1003 (Ala. Civ. App. 2018). “In reply, the Bank argued that the applicability of § 8-9A-5 was not a surprise to IMG and Carter because, although that particular statute had not been cited in the complaint, it had been specifically raised in its reply to IMG and Carter's response in opposition to the motion…”
Alexander v. J. Martin & Assocs. (In Re Terry Mfg. Co.), 363 B.R. 233 (Bankr. M.D. Ala. 2007). “§ 544 and Ala.Code § 8-9A-5. For purposes of deciding this motion, the Court will assume that the Trustee has established that the transfers in question were fraudulent conveyances, both under § 548 of the Bankruptcy Code as well as the pertinent sections of the Alabama…”
— Ala. Code § 8-9A-5(a) — 19 cases
SE Prop. Holdings, LLC v. Braswell, 255 F. Supp. 3d 1187 (S.D. Ala. 2017). “' In Count Three, SEPH advances a claim of constructive fraudulent transfer, in violation of Alabama Code § 8-9A-5(a), predicated on an allegation that Braswell,was insolvent at the time of, or as a result of, the subject transfers.”
THOMPSON PROP. v. Birmingham Hide & Tallow, 897 So. 2d 248 (Ala. 2004). “Alternatively, the Partnerships argue that they are entitled to a JML under § 8-9A-5(a), a part of the AUFTA. That Code section provides: "A transfer made by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made if the debtor made the transfer…”
Aliant Bank v. Davis, 198 So. 3d 508 (Ala. Civ. App. 2015). “Code 1975, § 8-9A-4(b); McPherson Oil, supra. A constructive fraudulent transfer occurs when a debtor transfers assets to another without consideration, and the debtor was, or became, insolvent at the time of the transfer.”
Andrews v. RBL, L.L.C. (In re Vista Bella, Inc.), 511 B.R. 163 (Bankr. S.D. Ala. 2014). “Ala.Code § 8-9A-5(a) deems transfers constructively fraudulent.”
McPherson Oil Co., Inc. v. Massey, 643 So. 2d 595 (Ala. 1994). “Under Ala.Code 1975, § 8-9A-5(a), a transfer made by a debtor is fraudulent as to a creditor, regardless of whether the creditor's claim arose before or after the transfer was made, if the debtor made the transfer with actual intent to hinder, delay, or defraud any creditor of…”
— Ala. Code § 8-9A-5(b) — 3 cases
Peacock Timber Transp., Inc. v. B.P. Holdings, LLC, 115 So. 3d 914 (Ala. 2012). “Therefore, we reject the premise of Blount’s statute-of-limitations argument raised below that Peacock’s AFTA claim was brought pursuant to § 8-9A-5. Our determination that Peacock’s claim is based on § 8-9A-4, not § 8-9A-5, is dis-positive of the statute-of-limitations issue.”
Premier Capital Funding, Inc. v. Earle (In Re Earle), 307 B.R. 276 (Bankr. S.D. Ala. 2002). “Any claim brought under § 8-9A-5(b) must be asserted within one year of the transfer.”
Am. Nat'l Red Cross v. ASD Specialty Health Care, Inc., 325 F. Supp. 2d 1322 (S.D. Ala. 2002).
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