Haw. Rev. Stat. » Haw. Rev. Stat. / Chapter 651C
Hawaii Revised Statutes

Haw. Rev. Stat. § 651C-4 (2026)

] Transfers fraudulent as to present and future creditors

✓ current as of July 2026
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     [§651C-4]  Transfers fraudulent as to present and future creditors.  (a)  A transfer made or obligation incurred by a debtor is fraudulent 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:

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

     (2)  Without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor:

          (A)  Was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction; or

          (B)  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.

     (b)  In determining actual intent under subsection (a)(1), consideration may be given, among other factors, to whether:

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

     (2)  The debtor had retained possession or control of the property transferred after the transfer;

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

     (4)  Before the transfer was made or obligation was incurred, the debtor was sued or threatened with suit;

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

     (6)  The debtor had absconded;

     (7)  The debtor had removed or concealed assets;

     (8)  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;

     (9)  The debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred;

    (10)  The transfer had occurred shortly before or shortly after a substantial debt was incurred; and

    (11)  The debtor had transferred the essential assets of the business to a lienor who had transferred the assets to an insider of the debtor. [L 1985, c 216, pt of §1]

 

Case Notes

 

  Fraudulent transfers, discussed.  916 F.2d 528 (1990).

  Plaintiffs pled facts with sufficient particularity to support a cause of action for fraudulent conveyance under subsection (a)(1) and (a)(2)(B) and §651C-5(a).  529 F. Supp. 2d 1190 (2007).

  Although Hawaii's uniform fraudulent transfer act does not preclude preferential transfers per se, if the preferential transfer was made with "actual intent to hinder, delay, or defraud any creditor" the transfer will be deemed fraudulent.  113 H. 174, 150 P.3d 823 (2006).

  Ample, clear, and convincing evidence of transferor's actual intent to hinder, delay, or defraud creditors existed where:  (1) transfers of funds were made to or for the benefit of insiders who were not creditors of transferor; (2) the transfers were made while litigation against judgment creditors over the transferred funds was pending; (3) prior to the litigation being completed, transferor "upstreamed" nearly all of its assets to or for the benefit of transferor's insider investor, leaving transferor unable to pay judgment creditors; (4) transferor received no consideration of reasonably equivalent value for the transfers; (5) the transfers occurred immediately after transferor's substantial indebtedness to judgment creditors was incurred; and (6) the transfers were made while transferor was winding up its business, thus leaving no foreseeable source to pay judgment creditors.  136 H. 158 (App.), 358 P.3d 727 (2015).

  Mentioned:  130 H. 58 (App.), 305 P.3d 474 (2013).

 

 

Notes of Decisions
Cited in 11 cases (4 in the last 5 years), 2006–2022 · leading case: Schmidt v. HSC, Inc., 358 P.3d 727 (Haw. App. 2015).
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Schmidt v. HSC, Inc., 358 P.3d 727 (Haw. App. 2015). · cites it 29× “) Indeed, HRS § 651C-4 is entitled “Transfers fraudulent to present and future creditors.”
In Re AFI Holding, Inc., 525 F.3d 700 (9th Cir. 2008). “§ 548 (a)(2), the equivalent of Haw. Rev. Stat. § 651C-4(a)(2). The present issue, in contrast, concerns the avoidance of fraudulent transfers under Haw.”
Adam Lee v. Dane Field, 889 F.3d 639 (9th Cir. 2018). “” Hawaii law provides that a transfer made “[w]ith actual intent to hinder, delay, or defraud any creditor of the debtor” is fraudulent, Haw. Rev. Stat. § 651C-4(a)(1), and therefore avoidable.”
Giacometti v. Arton Bermuda Ltd. (In Re Sia), 349 B.R. 640 (Bankr. D. Haw. 2006). “Haw.Rev.Stat. § 651C-4(a). The “transfer” must be of an “asset”.”
Rolloffs Hawaii, LLC - Adversary Proceeding (Bankr. D. Haw. 2021). · cites it 6× “Specifically, Haw. Rev. Stat. § 651C-4(a) provides that: A transfer made or obligation incurred by a debtor is fraudulent 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…”
David Sansone Co., Inc. v. Waiaha Ridge LLC (D. Haw. 2022). · cites it 3× “Plaintiffs seek summary judgment on the following causes of action in the Fourth Amended Complaint: COUNT VII - Fraudulent Transfer/Conveyance pursuant to Haw. Rev. Stat. §§ 651C-4(a)(1), 651C-7(a)(1), and 651C-8(b) and Common Law; COUNT VIII - Fraudulent Transfer pursuant to…”
Rich Sea Corp. v. Lam (Bankr. D. Haw. 2019). · cites it 3× “Lam) Count IX - Fraudulent Transfers (HRS § 651C-4(a)(1); ZHI against Ms. Lam) Count X - Fraudulent Transfers (HRS § 651C-4(a)(2); ZHI against Ms.”
Pac. Links US Holdings, Inc. v. Tianjin Dinghui Hongjun Equity Inv. Partners (Bankr. D. Haw. 2022). · cites it 3× “In particular, the debtors allege that these obligations and transfers are constructively fraudulent under Haw. Rev. Stat. § 651C-4(a)(2): A transfer made or obligation incurred by a debtor is fraudulent as to a creditor .”
Rolloffs Hawaii, LLC - Adversary Proceeding (Bankr. D. Haw. 2019). · cites it 2× “Intentional fraudulent transfer claims The complaint states claims6 for intentional fraudulent transfers under Haw. Rev. Stat. § 651C-4(a)(1): A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor’s claim arose before or after…”
Auld-Susott v. Galindo (D. Haw. 2019). “Susott” and “the 2010 Transfer”) was fraudulent under Haw. Rev. Stat. § 651C-4(a)(1); and 2) Plaintiffs were entitled to avoidance of the 2010 Transfer, to the extent necessary to satisfy their claims against D.”
Pac. Links US Holdings, Inc. v. Tianjin Dinghui Hongjun Equity Inv. Partners (Bankr. D. Haw. 2022). “They rely on Haw. Rev. Stat. § 651C-4(a)(2) and Bankruptcy Code § 548(a)(1)(B).”
— Haw. Rev. Stat. § 651C-4(a) — 2 cases
Giacometti v. Arton Bermuda Ltd. (In Re Sia), 349 B.R. 640 (Bankr. D. Haw. 2006). “Haw.Rev.Stat. § 651C-4(a). The “transfer” must be of an “asset”.”
Rolloffs Hawaii, LLC - Adversary Proceeding (Bankr. D. Haw. 2021). “Specifically, Haw. Rev. Stat. § 651C-4(a) provides that: A transfer made or obligation incurred by a debtor is fraudulent 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…”
— Haw. Rev. Stat. § 651C-4(a)(1) — 7 cases
Schmidt v. HSC, Inc., 358 P.3d 727 (Haw. App. 2015). “) Indeed, HRS § 651C-4 is entitled “Transfers fraudulent to present and future creditors.”
Adam Lee v. Dane Field, 889 F.3d 639 (9th Cir. 2018). “” Hawaii law provides that a transfer made “[w]ith actual intent to hinder, delay, or defraud any creditor of the debtor” is fraudulent, Haw. Rev. Stat. § 651C-4(a)(1), and therefore avoidable.”
David Sansone Co., Inc. v. Waiaha Ridge LLC (D. Haw. 2022). “Plaintiffs seek summary judgment on the following causes of action in the Fourth Amended Complaint: COUNT VII - Fraudulent Transfer/Conveyance pursuant to Haw. Rev. Stat. §§ 651C-4(a)(1), 651C-7(a)(1), and 651C-8(b) and Common Law; COUNT VIII - Fraudulent Transfer pursuant to…”
Rolloffs Hawaii, LLC - Adversary Proceeding (Bankr. D. Haw. 2021). “Specifically, Haw. Rev. Stat. § 651C-4(a) provides that: A transfer made or obligation incurred by a debtor is fraudulent 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…”
Rich Sea Corp. v. Lam (Bankr. D. Haw. 2019). “Lam) Count IX - Fraudulent Transfers (HRS § 651C-4(a)(1); ZHI against Ms. Lam) Count X - Fraudulent Transfers (HRS § 651C-4(a)(2); ZHI against Ms.”
— Haw. Rev. Stat. § 651C-4(a)(2) — 7 cases
In Re AFI Holding, Inc., 525 F.3d 700 (9th Cir. 2008). “§ 548 (a)(2), the equivalent of Haw. Rev. Stat. § 651C-4(a)(2). The present issue, in contrast, concerns the avoidance of fraudulent transfers under Haw.”
Schmidt v. HSC, Inc., 358 P.3d 727 (Haw. App. 2015). “) Indeed, HRS § 651C-4 is entitled “Transfers fraudulent to present and future creditors.”
Rolloffs Hawaii, LLC - Adversary Proceeding (Bankr. D. Haw. 2021). “Specifically, Haw. Rev. Stat. § 651C-4(a) provides that: A transfer made or obligation incurred by a debtor is fraudulent 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…”
David Sansone Co., Inc. v. Waiaha Ridge LLC (D. Haw. 2022). “Plaintiffs seek summary judgment on the following causes of action in the Fourth Amended Complaint: COUNT VII - Fraudulent Transfer/Conveyance pursuant to Haw. Rev. Stat. §§ 651C-4(a)(1), 651C-7(a)(1), and 651C-8(b) and Common Law; COUNT VIII - Fraudulent Transfer pursuant to…”
Rich Sea Corp. v. Lam (Bankr. D. Haw. 2019). “Lam) Count IX - Fraudulent Transfers (HRS § 651C-4(a)(1); ZHI against Ms. Lam) Count X - Fraudulent Transfers (HRS § 651C-4(a)(2); ZHI against Ms.”
— Haw. Rev. Stat. § 651C-4(a)(2)(A) — 1 case
Pac. Links US Holdings, Inc. v. Tianjin Dinghui Hongjun Equity Inv. Partners (Bankr. D. Haw. 2022). “In particular, the debtors allege that these obligations and transfers are constructively fraudulent under Haw. Rev. Stat. § 651C-4(a)(2): A transfer made or obligation incurred by a debtor is fraudulent as to a creditor .”
— Haw. Rev. Stat. § 651C-4(a)(2)(B) — 1 case
Pac. Links US Holdings, Inc. v. Tianjin Dinghui Hongjun Equity Inv. Partners (Bankr. D. Haw. 2022). “In particular, the debtors allege that these obligations and transfers are constructively fraudulent under Haw. Rev. Stat. § 651C-4(a)(2): A transfer made or obligation incurred by a debtor is fraudulent as to a creditor .”
— Haw. Rev. Stat. § 651C-4(a)(l) — 1 case
Schmidt v. HSC, Inc., 358 P.3d 727 (Haw. App. 2015). “) Indeed, HRS § 651C-4 is entitled “Transfers fraudulent to present and future creditors.”
— Haw. Rev. Stat. § 651C-4(b) — 3 cases
Schmidt v. HSC, Inc., 358 P.3d 727 (Haw. App. 2015). “) Indeed, HRS § 651C-4 is entitled “Transfers fraudulent to present and future creditors.”
Rolloffs Hawaii, LLC - Adversary Proceeding (Bankr. D. Haw. 2021). “Specifically, Haw. Rev. Stat. § 651C-4(a) provides that: A transfer made or obligation incurred by a debtor is fraudulent 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…”
Rolloffs Hawaii, LLC - Adversary Proceeding (Bankr. D. Haw. 2019). “Intentional fraudulent transfer claims The complaint states claims6 for intentional fraudulent transfers under Haw. Rev. Stat. § 651C-4(a)(1): A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor’s claim arose before or after…”
— Haw. Rev. Stat. § 651C-4(b)(11) — 1 case
Schmidt v. HSC, Inc., 358 P.3d 727 (Haw. App. 2015). “) Indeed, HRS § 651C-4 is entitled “Transfers fraudulent to present and future creditors.”
— Haw. Rev. Stat. § 651C-4(b)(2) — 1 case
Schmidt v. HSC, Inc., 358 P.3d 727 (Haw. App. 2015). “) Indeed, HRS § 651C-4 is entitled “Transfers fraudulent to present and future creditors.”
— Haw. Rev. Stat. § 651C-4(b)(3) — 1 case
Schmidt v. HSC, Inc., 358 P.3d 727 (Haw. App. 2015). “) Indeed, HRS § 651C-4 is entitled “Transfers fraudulent to present and future creditors.”
— Haw. Rev. Stat. § 651C-4(b)(4) — 1 case
Schmidt v. HSC, Inc., 358 P.3d 727 (Haw. App. 2015). “) Indeed, HRS § 651C-4 is entitled “Transfers fraudulent to present and future creditors.”
— Haw. Rev. Stat. § 651C-4(b)(5) — 1 case
Schmidt v. HSC, Inc., 358 P.3d 727 (Haw. App. 2015). “) Indeed, HRS § 651C-4 is entitled “Transfers fraudulent to present and future creditors.”
— Haw. Rev. Stat. § 651C-4(b)(6) — 1 case
Schmidt v. HSC, Inc., 358 P.3d 727 (Haw. App. 2015). “) Indeed, HRS § 651C-4 is entitled “Transfers fraudulent to present and future creditors.”
— Haw. Rev. Stat. § 651C-4(b)(7) — 1 case
Schmidt v. HSC, Inc., 358 P.3d 727 (Haw. App. 2015). “) Indeed, HRS § 651C-4 is entitled “Transfers fraudulent to present and future creditors.”
— Haw. Rev. Stat. § 651C-4(b)(8) — 1 case
Schmidt v. HSC, Inc., 358 P.3d 727 (Haw. App. 2015). “) Indeed, HRS § 651C-4 is entitled “Transfers fraudulent to present and future creditors.”
— Haw. Rev. Stat. § 651C-4(b)(9) — 1 case
Schmidt v. HSC, Inc., 358 P.3d 727 (Haw. App. 2015). “) Indeed, HRS § 651C-4 is entitled “Transfers fraudulent to present and future creditors.”
— Haw. Rev. Stat. § 651C-4(b)(l) — 1 case
Schmidt v. HSC, Inc., 358 P.3d 727 (Haw. App. 2015). “) Indeed, HRS § 651C-4 is entitled “Transfers fraudulent to present and future creditors.”
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