Ky. Rev. Stat. » Chapter 378A
Kentucky Revised Statutes

Ky. Rev. Stat. § 378A.040 (2026)

Transfer or obligation voidable as to present or future creditor

✓ current as of May 2026
Find cases: SyfertCases citing this section KY-LRCapps.legislature.ky.gov JustiaChapter on Justia CornellLII Search CasesGoogle Scholar

(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 for 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 property 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. Effective: January 1, 2016 History: Created 2015 Ky. Acts ch. 37, sec. 4, effective January 1, 2016.

Notes of Decisions
Cited in 11 cases (10 in the last 5 years), 2017–2026 · leading case: Reed Smith LLP v. Leed Hr, LLC, 2017 NY Slip Op 8478 (N.Y. App. Div. 2017).
Sort: Relevance Newest Treatment
Reed Smith LLP v. Leed Hr, LLC, 2017 NY Slip Op 8478 (N.Y. App. Div. 2017). “v Kontogiannis, 110 AD3d 522 [1st Dept 2013]; Debtor and Creditor Law §§ 276, 278; see also Ky Rev Stat Ann § 378A.040). Fair consideration was not given in exchange for the shares (see Commodity Futures Trading Commn.”
Facilityone Tech., LLC v. Kinetic Props., Inc. (Ky. Ct. App. 2024). · cites it 10× “As the motion states, its purpose was “to void the transfer of business assets from C2 to Facility One pursuant to KRS 378A.040.” Record (R.) at 167. Two days later, Facility One filed a motion for in camera review, requesting that the circuit court review an unredacted version…”
Granite State Ins. Co. v. Taylor (W.D. Ky. 2025). · cites it 8× “Voiding the Transactions under KRS 378A.040 and 378A.050 In its motion, Granite State also seek to void the December 2018 and February 2019 shareholder distributions because Defendants acted with “actual intent .”
Savannah Wilson v. Augusta Home Sales, Inc. (Ky. Ct. App. 2025). · cites it 7× “Validity of Kincaid’s Lien Appellants next argue the circuit court erred in voiding Kincaid’s lien under KRS 378A.040. They contend genuine issues of material fact preclude such a finding.”
Parton v. Parton (E.D. Ky. 2022). · cites it 4× “] The KUVTA’s limitations period states the claim is extinguished unless it is brought: (1) Under KRS 378A.040(1)(a), not later than four (4) years after the transfer was made or the obligation was incurred or, if later, not later than one (1) year after the transfer or…”
Hankins v. CKK Props., LLC (Bankr. E.D. Ky. 2022). · cites it 3× “§ 378A.040(1)(b)) (the “State Law Claim”) provide an alternative ground to avoid the Shamu Transfer.”
Paige McKee v. Markus Resing (Ky. Ct. App. 2026). · cites it 3× “To challenge a conveyance as fraudulent, a plaintiff must suffer prejudice or injury resulting from the conveyance – that is the tenor of KRS 378A.040. Further, a creditor’s remedy in a fraudulent conveyance action under either provision is limited to reaching the property which…”
Parton v. Parton (E.D. Ky. 2023). · cites it 2× “] The KUVTA’s limitations period states the claim is extinguished unless it is brought: (1) Under KRS 378A.040(1)(a), not later than four (4) years after the transfer was made or the obligation was incurred or, if later, not later than one (1) year after the transfer or…”
Gibson v. Wikeley Inc. (E.D. Ky. 2023). · cites it 2× “§ 378A.040(1)(A) and one count under KY. REV.”
United States of Am. v. Michael S. Gainey, et al. (E.D. Ky. 2026). · cites it 2× “Ky. Rev. Stat. § 378A.040(2).1 The Government sufficiently alleges that these factors exist.”
Little v. The Farmers Bank (Bankr. W.D. Ky. 2024). “The Trustee also seeks to avoid and recover from Farmers any transfers that may have been fraudulent under KRS 378A.040, 378A.050, and 11 U.S.C. § 540 of the Bankruptcy Code.”
— Ky. Rev. Stat. § 378A.040(1) — 2 cases
Facilityone Tech., LLC v. Kinetic Props., Inc. (Ky. Ct. App. 2024). “As the motion states, its purpose was “to void the transfer of business assets from C2 to Facility One pursuant to KRS 378A.040.” Record (R.) at 167. Two days later, Facility One filed a motion for in camera review, requesting that the circuit court review an unredacted version…”
Granite State Ins. Co. v. Taylor (W.D. Ky. 2025). “Voiding the Transactions under KRS 378A.040 and 378A.050 In its motion, Granite State also seek to void the December 2018 and February 2019 shareholder distributions because Defendants acted with “actual intent .”
— Ky. Rev. Stat. § 378A.040(1)(A) — 1 case
Gibson v. Wikeley Inc. (E.D. Ky. 2023). “§ 378A.040(1)(A) and one count under KY. REV.”
— Ky. Rev. Stat. § 378A.040(1)(a) — 5 cases
Parton v. Parton (E.D. Ky. 2022). “] The KUVTA’s limitations period states the claim is extinguished unless it is brought: (1) Under KRS 378A.040(1)(a), not later than four (4) years after the transfer was made or the obligation was incurred or, if later, not later than one (1) year after the transfer or…”
Granite State Ins. Co. v. Taylor (W.D. Ky. 2025). “Voiding the Transactions under KRS 378A.040 and 378A.050 In its motion, Granite State also seek to void the December 2018 and February 2019 shareholder distributions because Defendants acted with “actual intent .”
Parton v. Parton (E.D. Ky. 2023). “] The KUVTA’s limitations period states the claim is extinguished unless it is brought: (1) Under KRS 378A.040(1)(a), not later than four (4) years after the transfer was made or the obligation was incurred or, if later, not later than one (1) year after the transfer or…”
Facilityone Tech., LLC v. Kinetic Props., Inc. (Ky. Ct. App. 2024). “As the motion states, its purpose was “to void the transfer of business assets from C2 to Facility One pursuant to KRS 378A.040.” Record (R.) at 167. Two days later, Facility One filed a motion for in camera review, requesting that the circuit court review an unredacted version…”
Savannah Wilson v. Augusta Home Sales, Inc. (Ky. Ct. App. 2025). “Validity of Kincaid’s Lien Appellants next argue the circuit court erred in voiding Kincaid’s lien under KRS 378A.040. They contend genuine issues of material fact preclude such a finding.”
— Ky. Rev. Stat. § 378A.040(1)(b) — 5 cases
Savannah Wilson v. Augusta Home Sales, Inc. (Ky. Ct. App. 2025). “Validity of Kincaid’s Lien Appellants next argue the circuit court erred in voiding Kincaid’s lien under KRS 378A.040. They contend genuine issues of material fact preclude such a finding.”
Hankins v. CKK Props., LLC (Bankr. E.D. Ky. 2022). “§ 378A.040(1)(b)) (the “State Law Claim”) provide an alternative ground to avoid the Shamu Transfer.”
Parton v. Parton (E.D. Ky. 2022). “] The KUVTA’s limitations period states the claim is extinguished unless it is brought: (1) Under KRS 378A.040(1)(a), not later than four (4) years after the transfer was made or the obligation was incurred or, if later, not later than one (1) year after the transfer or…”
Parton v. Parton (E.D. Ky. 2023). “] The KUVTA’s limitations period states the claim is extinguished unless it is brought: (1) Under KRS 378A.040(1)(a), not later than four (4) years after the transfer was made or the obligation was incurred or, if later, not later than one (1) year after the transfer or…”
Granite State Ins. Co. v. Taylor (W.D. Ky. 2025). “Voiding the Transactions under KRS 378A.040 and 378A.050 In its motion, Granite State also seek to void the December 2018 and February 2019 shareholder distributions because Defendants acted with “actual intent .”
— Ky. Rev. Stat. § 378A.040(2) — 2 cases
Facilityone Tech., LLC v. Kinetic Props., Inc. (Ky. Ct. App. 2024). “As the motion states, its purpose was “to void the transfer of business assets from C2 to Facility One pursuant to KRS 378A.040.” Record (R.) at 167. Two days later, Facility One filed a motion for in camera review, requesting that the circuit court review an unredacted version…”
United States of Am. v. Michael S. Gainey, et al. (E.D. Ky. 2026). “Ky. Rev. Stat. § 378A.040(2).1 The Government sufficiently alleges that these factors exist.”
— Ky. Rev. Stat. § 378A.040(2)(a) — 1 case
Facilityone Tech., LLC v. Kinetic Props., Inc. (Ky. Ct. App. 2024). “As the motion states, its purpose was “to void the transfer of business assets from C2 to Facility One pursuant to KRS 378A.040.” Record (R.) at 167. Two days later, Facility One filed a motion for in camera review, requesting that the circuit court review an unredacted version…”
— Ky. Rev. Stat. § 378A.040(2)(d) — 1 case
Facilityone Tech., LLC v. Kinetic Props., Inc. (Ky. Ct. App. 2024). “As the motion states, its purpose was “to void the transfer of business assets from C2 to Facility One pursuant to KRS 378A.040.” Record (R.) at 167. Two days later, Facility One filed a motion for in camera review, requesting that the circuit court review an unredacted version…”
— Ky. Rev. Stat. § 378A.040(3) — 2 cases
Hankins v. CKK Props., LLC (Bankr. E.D. Ky. 2022). “§ 378A.040(1)(b)) (the “State Law Claim”) provide an alternative ground to avoid the Shamu Transfer.”
Facilityone Tech., LLC v. Kinetic Props., Inc. (Ky. Ct. App. 2024). “As the motion states, its purpose was “to void the transfer of business assets from C2 to Facility One pursuant to KRS 378A.040.” Record (R.) at 167. Two days later, Facility One filed a motion for in camera review, requesting that the circuit court review an unredacted version…”
— Ky. Rev. Stat. § 378A.040(a) — 1 case
Paige McKee v. Markus Resing (Ky. Ct. App. 2026). “To challenge a conveyance as fraudulent, a plaintiff must suffer prejudice or injury resulting from the conveyance – that is the tenor of KRS 378A.040. Further, a creditor’s remedy in a fraudulent conveyance action under either provision is limited to reaching the property which…”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.