Illinois Compiled Statutes
740 ILCS 160/5 (2026)
(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 he would incur, debts beyond his ability to pay as they became due
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(740 ILCS 160/5)
(from Ch. 59, par. 105)
Sec. 5.
(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 he would incur, debts beyond his ability to pay as they became due.
(b) In determining actual intent under paragraph (1) of subsection (a), consideration
may be given, among other factors, to whether:
(1) the transfer or obligation was to an insider;
(2) the debtor 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
had been sued or threatened with suit;
(5) the transfer was of substantially all the debtor's assets;
(6) the debtor absconded;
(7) the debtor 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 occurred shortly before or shortly after a substantial
debt was incurred; and
(11) the debtor transferred the essential assets of the business to a
lienor who transferred the assets to an insider of the debtor.
(Source: P.A. 86-814.)
Notes of Decisions
Cited in 216
cases (26 in the last 5 years), 1993–2026 · leading case: People ex rel. Dep't of Human Rights v. Oakridge Healthcare Ctr., LLC, 2020 IL 124753 (Ill. 2020).
People ex rel. Dep't of Human Rights v. Oakridge Healthcare Ctr., LLC, 2020 IL 124753 (Ill. 2020). “¶ 37 In Illinois, sections 5 and 6 of the Uniform Fraudulent Transfer Act (Fraud Act) (740 ILCS 160/5, 6 (West 2018)) recognize two types of fraud: fraud in fact and fraud in law (Bank of America v.”
Grochocinski v. Zeigler (In Re Zeigler), 320 B.R. 362 (Bankr. N.D. Ill. 2005). “§ 544 and 740 ILCS 160/5 and 160/6 and to sell the Property pursuant to 11 U.”
Premier Prop. Mgmt., Inc. v. Chavez, 728 N.E.2d 476 (Ill. 2000). “" 740 ILCS 160/5(a)(1) (West 1996). Our appellate court has reached conflicting conclusions as to whether the Fraudulent Transfer Act may be used against a debtor who is relying on the protection furnished by the tenancy by the entirety provision.”
Helms v. Roti (In Re Roti), 271 B.R. 281 (Bankr. N.D. Ill. 2002). “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…”
Doly v. Chang (In Re Joy Recovery Tech. Corp.), 286 B.R. 54 (Bankr. N.D. Ill. 2002). “The Litigation Issues The Trustee’s Fraudulent Conveyance Claims under Illinois Law Counts I and II of the instant adversary charge a fraudulent transfer under 740 ILCS 160/5(a)(2) and 160/6(a), respectively.”
Apollo Real Est. Inv. Fund, IV, L.P. v. Gelber, 935 N.E.2d 963 (Ill. App. Ct. 2010). “There are two provisions for liability under this enactment: section 5 (740 ILCS 160/5 (West 2000)), where the creditor’s claim arose either before or after the transfer; and section 6, where the creditor’s claim arose only before the transfer (740 ILCS 160/6 (West 2000)).”
Edgewater Med. Ctr. v. Edgewater Prop. Co. (In Re Edgewater Med. Ctr.), 373 B.R. 845 (Bankr. N.D. Ill. 2007). “Having concluded that transfers did occur, the court looks to 740 ILCS 160/5(a) which reads in relevant part: 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…”
Wachovia Sec., LLC v. Banco Panamericano, Inc., 674 F.3d 743 (7th Cir. 2012). “Fraudulent Transfers In finding Banco’s 2002 blanket lien over Loop’s assets a fraudulent transfer, the district court found sufficient evidence of both actual and constructive fraud under Illinois’s Uniform Fraudulent Transfer Act (UFTA), 740 ILCS 160/5(a). Wachovia, 586…”
Cox v. Grube (In re Grube), 500 B.R. 764 (Bankr. C.D. Ill. 2013). “Count Initial Transferee Description of Claim Amount I INC Section 548: constructive fraud $205,000 II INC 740 ILCS 160/5(a)(2): constructive fraud 657,660 III INC 740 ILCS 160/5(a)(l): actual fraud 657,660 IV DRG Section 548: constructive fraud 258.”
Harris Bank St. Charles v. Weber, 700 N.E.2d 722 (Ill. App. Ct. 1998). “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…”
Rush Univ. Med. Ctr. v. Sessions, 2012 IL 112906 (Ill. 2012). “2 Counts I and IV alleged that asset transfers by Sessions to the trusts should be set aside under section 5 of the Fraudulent Transfer Act (740 ILCS 160/5 (West 2006)). Count II alleged that the trusts created by Sessions were contractually bound by the $1.”
In Re Image Worldwide, Ltd., Debtor. David P. Leibowitz, Chapter 7 Tr. v. Parkway Bank & Trust Co., 139 F.3d 574 (7th Cir. 1998). “§ 544 (b), the trustee charged that the transfers to Parkway were fraudulent transfers in violation of the Uniform Fraudulent Transfer Act (UFTA), 740 ILCS 160/5, because IW never received reasonably equivalent value for its guarantees to Parkway.”
— 740 ILCS 160/5(a) — 57 cases
Edgewater Med. Ctr. v. Edgewater Prop. Co. (In Re Edgewater Med. Ctr.), 373 B.R. 845 (Bankr. N.D. Ill. 2007). “Having concluded that transfers did occur, the court looks to 740 ILCS 160/5(a) which reads in relevant part: 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…”
Harris Bank St. Charles v. Weber, 700 N.E.2d 722 (Ill. App. Ct. 1998). “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…”
Krol v. Wilcek (In Re H. King & Assocs.), 295 B.R. 246 (Bankr. N.D. Ill. 2003).
Wachovia Sec., LLC v. Banco Panamericano, Inc., 674 F.3d 743 (7th Cir. 2012). “Fraudulent Transfers In finding Banco’s 2002 blanket lien over Loop’s assets a fraudulent transfer, the district court found sufficient evidence of both actual and constructive fraud under Illinois’s Uniform Fraudulent Transfer Act (UFTA), 740 ILCS 160/5(a). Wachovia, 586…”
Gierum v. Glick (In re Glick), 568 B.R. 634 (Bankr. N.D. Ill. 2017).
— 740 ILCS 160/5(a)(1) — 54 cases
Premier Prop. Mgmt., Inc. v. Chavez, 728 N.E.2d 476 (Ill. 2000). “" 740 ILCS 160/5(a)(1) (West 1996). Our appellate court has reached conflicting conclusions as to whether the Fraudulent Transfer Act may be used against a debtor who is relying on the protection furnished by the tenancy by the entirety provision.”
People ex rel. Dep't of Human Rights v. Oakridge Healthcare Ctr., LLC, 2020 IL 124753 (Ill. 2020). “¶ 37 In Illinois, sections 5 and 6 of the Uniform Fraudulent Transfer Act (Fraud Act) (740 ILCS 160/5, 6 (West 2018)) recognize two types of fraud: fraud in fact and fraud in law (Bank of America v.”
Rush Univ. Med. Ctr. v. Sessions, 2012 IL 112906 (Ill. 2012). “2 Counts I and IV alleged that asset transfers by Sessions to the trusts should be set aside under section 5 of the Fraudulent Transfer Act (740 ILCS 160/5 (West 2006)). Count II alleged that the trusts created by Sessions were contractually bound by the $1.”
Dan Jt. Venture Iii, L.P. v. Touris, 598 B.R. 430 (E.D. Ill. 2019).
Wachovia Sec., LLC v. Banco Panamericano, Inc., 674 F.3d 743 (7th Cir. 2012). “Fraudulent Transfers In finding Banco’s 2002 blanket lien over Loop’s assets a fraudulent transfer, the district court found sufficient evidence of both actual and constructive fraud under Illinois’s Uniform Fraudulent Transfer Act (UFTA), 740 ILCS 160/5(a). Wachovia, 586…”
— 740 ILCS 160/5(a)(2) — 58 cases
Doly v. Chang (In Re Joy Recovery Tech. Corp.), 286 B.R. 54 (Bankr. N.D. Ill. 2002). “The Litigation Issues The Trustee’s Fraudulent Conveyance Claims under Illinois Law Counts I and II of the instant adversary charge a fraudulent transfer under 740 ILCS 160/5(a)(2) and 160/6(a), respectively.”
Grochocinski v. Zeigler (In Re Zeigler), 320 B.R. 362 (Bankr. N.D. Ill. 2005). “§ 544 and 740 ILCS 160/5 and 160/6 and to sell the Property pursuant to 11 U.”
Doctors Hosp. of Hyde Park, Inc. v. Desnick (In Re Doctors Hosp. of Hyde Park, Inc.), 360 B.R. 787 (Bankr. N.D. Ill. 2007).
Daley v. Chang (In Re Joy Recovery Tech. Corp.), 257 B.R. 253 (Bankr. N.D. Ill. 2001).
Cox v. Grube (In re Grube), 500 B.R. 764 (Bankr. C.D. Ill. 2013). “Count Initial Transferee Description of Claim Amount I INC Section 548: constructive fraud $205,000 II INC 740 ILCS 160/5(a)(2): constructive fraud 657,660 III INC 740 ILCS 160/5(a)(l): actual fraud 657,660 IV DRG Section 548: constructive fraud 258.”
— 740 ILCS 160/5(a)(2)(A) — 7 cases
Scholes v. Lehmann, 56 F.3d 750 (7th Cir. 1995).
Paloian v. LaSalle Bank Nat'l Ass'n (In re Doctors Hosp. of Hyde Park, Inc.), 507 B.R. 558 (Bankr. N.D. Ill. 2013).
Scholes v. Lehmann, 56 F.3d 750 (7th Cir. 1995).
United States v. Equip. Acquisition Resources, Inc., 485 B.R. 586 (N.D. Ill. 2013).
People ex rel. Dep't of Human Rights v. Oakridge Nursing & Rehab Ctr., 2019 IL App (1st) 170806 (Ill. App. Ct. 2019).
— 740 ILCS 160/5(a)(2)(B) — 3 cases
Paloian v. LaSalle Bank Nat'l Ass'n (In re Doctors Hosp. of Hyde Park, Inc.), 507 B.R. 558 (Bankr. N.D. Ill. 2013).
Centerpoint Energy Servs., I v. Cameel Halim, 743 F.3d 503 (7th Cir. 2014).
Caterpillar Inc. v. Jerryco Footwear, Inc., 880 F. Supp. 578 (C.D. Ill. 1994).
— 740 ILCS 160/5(a)(l) — 42 cases
Helms v. Roti (In Re Roti), 271 B.R. 281 (Bankr. N.D. Ill. 2002). “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…”
Premier Prop. Mgmt., Inc. v. Chavez, 728 N.E.2d 476 (Ill. 2000). “" 740 ILCS 160/5(a)(1) (West 1996). Our appellate court has reached conflicting conclusions as to whether the Fraudulent Transfer Act may be used against a debtor who is relying on the protection furnished by the tenancy by the entirety provision.”
Cox v. Grube (In re Grube), 500 B.R. 764 (Bankr. C.D. Ill. 2013). “Count Initial Transferee Description of Claim Amount I INC Section 548: constructive fraud $205,000 II INC 740 ILCS 160/5(a)(2): constructive fraud 657,660 III INC 740 ILCS 160/5(a)(l): actual fraud 657,660 IV DRG Section 548: constructive fraud 258.”
Brandt v. KLC Fin., Inc. (In re Equip. Acquisition Resources, Inc.), 481 B.R. 422 (Bankr. N.D. Ill. 2012).
Steinberg v. Schneider (In Re Schneider), 417 B.R. 907 (Bankr. N.D. Ill. 2009).
— 740 ILCS 160/5(a)(l)(2)(4) — 1 case
Deschepper v. Midwest Wine & Spirits, Inc., 84 F. Supp. 3d 767 (N.D. Ill. 2015).
— 740 ILCS 160/5(b) — 56 cases
Apollo Real Est. Inv. Fund, IV, L.P. v. Gelber, 935 N.E.2d 963 (Ill. App. Ct. 2010). “There are two provisions for liability under this enactment: section 5 (740 ILCS 160/5 (West 2000)), where the creditor’s claim arose either before or after the transfer; and section 6, where the creditor’s claim arose only before the transfer (740 ILCS 160/6 (West 2000)).”
Harris Bank St. Charles v. Weber, 700 N.E.2d 722 (Ill. App. Ct. 1998). “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…”
People ex rel. Dep't of Human Rights v. Oakridge Healthcare Ctr., LLC, 2020 IL 124753 (Ill. 2020). “¶ 37 In Illinois, sections 5 and 6 of the Uniform Fraudulent Transfer Act (Fraud Act) (740 ILCS 160/5, 6 (West 2018)) recognize two types of fraud: fraud in fact and fraud in law (Bank of America v.”
Wachovia Sec., LLC v. Banco Panamericano, Inc., 674 F.3d 743 (7th Cir. 2012). “Fraudulent Transfers In finding Banco’s 2002 blanket lien over Loop’s assets a fraudulent transfer, the district court found sufficient evidence of both actual and constructive fraud under Illinois’s Uniform Fraudulent Transfer Act (UFTA), 740 ILCS 160/5(a). Wachovia, 586…”
Grochocinski v. Schlossberg, 402 B.R. 825 (N.D. Ill. 2009).
— 740 ILCS 160/5(b)(1) — 11 cases
Michael Brandon v. Anesthesia & Pain Mgmt. Assocs., Ltd., 419 F.3d 594 (7th Cir. 2005).
Premier Prop. Mgmt., Inc. v. Chavez, 728 N.E.2d 476 (Ill. 2000). “" 740 ILCS 160/5(a)(1) (West 1996). Our appellate court has reached conflicting conclusions as to whether the Fraudulent Transfer Act may be used against a debtor who is relying on the protection furnished by the tenancy by the entirety provision.”
Kennedy v. Four Boys Labor Servs., Inc., 664 N.E.2d 1088 (Ill. App. Ct. 1996).
West Michigan Debt Collection, Inc. v. Weber, Jr. (N.D. Ill. 2018).
Janssen v. Reschke (N.D. Ill. 2020).
— 740 ILCS 160/5(b)(2) — 2 cases
Wildcat Enter., LLC v. Weber, 322 F.R.D. 306 (N.D. Ill. 2017).
McKinney v. Panico (N.D. Ill. 2022).
— 740 ILCS 160/5(b)(3) — 2 cases
Caterpillar Inc. v. Jerryco Footwear, Inc., 880 F. Supp. 578 (C.D. Ill. 1994).
Wildcat Enter., LLC v. Weber, 322 F.R.D. 306 (N.D. Ill. 2017).
— 740 ILCS 160/5(b)(4) — 1 case
Caterpillar Inc. v. Jerryco Footwear, Inc., 880 F. Supp. 578 (C.D. Ill. 1994).
— 740 ILCS 160/5(b)(5) — 4 cases
People ex rel. Dep't of Human Rights v. Oakridge Healthcare Ctr., LLC, 2020 IL 124753 (Ill. 2020). “¶ 37 In Illinois, sections 5 and 6 of the Uniform Fraudulent Transfer Act (Fraud Act) (740 ILCS 160/5, 6 (West 2018)) recognize two types of fraud: fraud in fact and fraud in law (Bank of America v.”
People ex rel. Dep't of Human Rights v. Oakridge Nursing & Rehab Ctr., 2019 IL App (1st) 170806 (Ill. App. Ct. 2019).
Wildcat Enter., LLC v. Weber, 322 F.R.D. 306 (N.D. Ill. 2017).
People ex rel. Dep't of Human Rights v. Oakridge Nursing & Rehab Ctr., 2019 IL App (1st) 170806 (Ill. App. Ct. 2019).
— 740 ILCS 160/5(b)(6) — 2 cases
Caterpillar Inc. v. Jerryco Footwear, Inc., 880 F. Supp. 578 (C.D. Ill. 1994).
Frank Ix & Sons, Inc. v. Phillipp Textiles, Inc. & Thomas J. Phillipp, 165 F.3d 32 (7th Cir. 1998).
— 740 ILCS 160/5(b)(7) — 1 case
Caterpillar Inc. v. Jerryco Footwear, Inc., 880 F. Supp. 578 (C.D. Ill. 1994).
— 740 ILCS 160/5(b)(8) — 4 cases
People ex rel. Dep't of Human Rights v. Oakridge Nursing & Rehab Ctr., 2019 IL App (1st) 170806 (Ill. App. Ct. 2019).
Caterpillar Inc. v. Jerryco Footwear, Inc., 880 F. Supp. 578 (C.D. Ill. 1994).
People ex rel. Dep't of Human Rights v. Oakridge Nursing & Rehab Ctr., 2019 IL App (1st) 170806 (Ill. App. Ct. 2019).
People ex rel. Dep't of Human Rights v. Oakridge Nursing & Rehab Ctr., 2019 IL App (1st) 170806 (Ill. App. Ct. 2019).
— 740 ILCS 160/5(b)(9) — 4 cases
People ex rel. Dep't of Human Rights v. Oakridge Healthcare Ctr., LLC, 2020 IL 124753 (Ill. 2020). “¶ 37 In Illinois, sections 5 and 6 of the Uniform Fraudulent Transfer Act (Fraud Act) (740 ILCS 160/5, 6 (West 2018)) recognize two types of fraud: fraud in fact and fraud in law (Bank of America v.”
Grochocinski v. Schlossberg, 402 B.R. 825 (N.D. Ill. 2009).
Caterpillar Inc. v. Jerryco Footwear, Inc., 880 F. Supp. 578 (C.D. Ill. 1994).
Johnstone Ex Rel. Tarragon Realty Investors, Inc. v. Wabick, 220 F. Supp. 2d 899 (N.D. Ill. 2002).
— 740 ILCS 160/5(b)(l) — 9 cases
Steel Co. v. Morgan Marshall Indus., Inc., 662 N.E.2d 595 (Ill. App. Ct. 1996).
Edgewater Med. Ctr. v. Edgewater Prop. Co. (In Re Edgewater Med. Ctr.), 373 B.R. 845 (Bankr. N.D. Ill. 2007). “Having concluded that transfers did occur, the court looks to 740 ILCS 160/5(a) which reads in relevant part: 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…”
Wachovia Sec., LLC v. Jahelka, 586 F. Supp. 2d 972 (N.D. Ill. 2008).
Premier Prop. Mgmt., Inc. v. Chavez, 728 N.E.2d 476 (Ill. 2000). “" 740 ILCS 160/5(a)(1) (West 1996). Our appellate court has reached conflicting conclusions as to whether the Fraudulent Transfer Act may be used against a debtor who is relying on the protection furnished by the tenancy by the entirety provision.”
The Nostalgia Network, Inc. v. Bonnie M. Lockwood, 315 F.3d 717 (7th Cir. 2002).
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