Tennessee Code Annotated

Tenn. Code Ann. § 66-3-305 (2026)

Transfers fraudulent as to present and future creditors

✓ current as of May 2026

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(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 subdivision (a)(1), 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.

Acts 2003, ch. 42, § 1.

Notes of Decisions

Cited in 54 cases (8 in the last 5 years), 1983–2024 · leading case: Guinn v. Lines (In Re Trans-Lines West, Inc.), 203 B.R. 653 (Bankr. E.D. Tenn. 1996).

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Guinn v. Lines (In Re Trans-Lines West, Inc.), 203 B.R. 653 (Bankr. E.D. Tenn. 1996). · cites it 26× “The Trustee’s state law claims relied upon in support of his § 544(b) action are grounded upon Tenn.Code Ann. §§ 66-3-305 through 308 (1993).”

Paris v. Walker (In re Walker), 566 B.R. 503 (Bankr. E.D. Tenn. 2017). · cites it 14× “Tenn. Code Ann. § 66-3-305 (a)(l). A trustee may also avoid transfers for which the debtor did not receive “a reasonably equivalent value in exchange for the transfer or obligation” and that were made at a time when either: (1) the debtor “[w]as engaged or was about to engage in…”

Webb Mtn, LLC v. Exec. Realty P'ship, L.P. (In Re Webb Mtn, LLC), 420 B.R. 418 (Bankr. E.D. Tenn. 2009). · cites it 11× “Tenn.Code Ann. § 66-3-305. Similarly, Tennessee Code Annotated § 66-3-306(a) provides that: (a) A transfer made or obligation incurred by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the…”

Nippert v. Jackson, 860 F. Supp. 2d 554 (M.D. Tenn. 2012). · cites it 15× “See Tenn. Code Ann. § 66-3-305 , comment 5 ("Proof of the existence of any one or more of the factors enumerated in subsection (b) may be relevant evidence as to the debtor's actual intent but does not create a presumption that the debtor has made a fraudulent transfer.”

Edwards v. Edwards, 713 S.W.2d 642 (Tenn. 1986). · cites it 8× “OPINION OF COURT OF APPEALS The Court of Appeals determined: (1) that Henry Edwards’ obligation to pay alimony to Janie Edwards was not extinguished by his death; (2) certain bank accounts held by Henry Edwards and his second wife violated T.C.A. § 66-3-305 and were, by the…”

Webb Mtn, LLC v. Exec. Realty P'ship (In Re Webb Mtn, LLC), 414 B.R. 308 (Bankr. E.D. Tenn. 2009). · cites it 6× “LEXIS 235, at *3, 1999 WL 219163 , at *1 (citing Tenn. Code Ann. § 66-3-305 ). Under the Uniform Fraudulent Conveyance Act, "fair consideration” is given "[w]hen in exchange for such property, or obligation, as a fair equivalent therefor, and in good faith, property is conveyed…”

Orlando Residence, Ltd. v. Nashville Lodging Co., 104 S.W.3d 848 (Tenn. Ct. App. 2002). · cites it 3× “We think the jury easily could have found evidence to satisfy the requirements of Tenn.Code Ann. § 66-3-305. The evidence also showed that just five days after Orlando Residence received its judgment defendant Nelson began to transfer assets out of Nashville Residence to a…”

Farinash v. Silvey (In Re Silvey), 378 B.R. 186 (Bankr. E.D. Tenn. 2007). · cites it 10× “Tenn. Code Ann. §§ 66-3-305 (a)(2) & 66-3-306.”

Se. Waffles, LLC v. United States Dep't of Treasury, 702 F.3d 850 (6th Cir. 2012). · cites it 2× “” The Bankruptcy Court nonetheless rejected the notion that a noncom-pensatory tax penalty that is statutorily required and properly imposed can be avoided as a fraudulent obligation if assessed against an insolvent debtor within the relevant reach-back period.”

Hawk v. Comm'r, 2012 T.C. Memo. 154 (Tax Ct. 2012). · cites it 4× “TUFTA provides that certain transfers to present and future creditors are fraudulent in the following circumstances: (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…”

Brown v. Riley (In Re Omni Mech. Contractors, Inc.), 114 B.R. 518 (Bankr. E.D. Tenn. 1990). · cites it 6× “Tenn.Code Ann. § 66-3-305 (1982). Every conveyance made without fair consideration, when the person making it is engaged or is about to engage in a business or transaction for which the property remaining in his hands, after the conveyance, is an unreasonably small capital, is…”

Weaver v. Nelms, 750 S.W.2d 158 (Tenn. Ct. App. 1987). · cites it 2× “The trial court also found that Nelms made a transfer which rendered him insolvent and that by virtue of T.C.A. § 66-3-305 (1982) the transfer was fraudulent as to his creditors.”

Show all 54 citing cases →

— Tenn. Code Ann. § 66-3-305(a) — 8 cases

Nippert v. Jackson, 860 F. Supp. 2d 554 (M.D. Tenn. 2012). “See Tenn. Code Ann. § 66-3-305 , comment 5 ("Proof of the existence of any one or more of the factors enumerated in subsection (b) may be relevant evidence as to the debtor's actual intent but does not create a presumption that the debtor has made a fraudulent transfer.”

Webb Mtn, LLC v. Exec. Realty P'ship, L.P. (In Re Webb Mtn, LLC), 420 B.R. 418 (Bankr. E.D. Tenn. 2009). “Tenn.Code Ann. § 66-3-305. Similarly, Tennessee Code Annotated § 66-3-306(a) provides that: (a) A transfer made or obligation incurred by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the…”

Farinash v. Silvey (In Re Silvey), 378 B.R. 186 (Bankr. E.D. Tenn. 2007). “Tenn. Code Ann. §§ 66-3-305 (a)(2) & 66-3-306.”

Webb Mtn, LLC v. Exec. Realty P'ship (In Re Webb Mtn, LLC), 414 B.R. 308 (Bankr. E.D. Tenn. 2009). “LEXIS 235, at *3, 1999 WL 219163 , at *1 (citing Tenn. Code Ann. § 66-3-305 ). Under the Uniform Fraudulent Conveyance Act, "fair consideration” is given "[w]hen in exchange for such property, or obligation, as a fair equivalent therefor, and in good faith, property is conveyed…”

Perkins v. Brunger, 303 S.W.3d 688 (Tenn. Ct. App. 2009).

— Tenn. Code Ann. § 66-3-305(a)(1) — 5 cases

Lindsey v. Collier (M.D. Tenn. 2021).

Edgefield Holdings, LLC v. The Blumberg 2 Trust (E.D. Tenn. 2023).

Tamala Teague v. Garnette Kidd (Tenn. Ct. App. 2017).

Martin Holmes v. David Karkau (2022).

— Tenn. Code Ann. § 66-3-305(a)(2) — 7 cases

Se. Waffles, LLC v. United States Dep't of Treasury, 702 F.3d 850 (6th Cir. 2012). “” The Bankruptcy Court nonetheless rejected the notion that a noncom-pensatory tax penalty that is statutorily required and properly imposed can be avoided as a fraudulent obligation if assessed against an insolvent debtor within the relevant reach-back period.”

Farinash v. Silvey (In Re Silvey), 378 B.R. 186 (Bankr. E.D. Tenn. 2007). “Tenn. Code Ann. §§ 66-3-305 (a)(2) & 66-3-306.”

Auto. Experts, Inc. v. Kallberg (M.D. Tenn. 2021).

— Tenn. Code Ann. § 66-3-305(a)(l) — 1 case

— Tenn. Code Ann. § 66-3-305(b) — 5 cases

Farinash v. Silvey (In Re Silvey), 378 B.R. 186 (Bankr. E.D. Tenn. 2007). “Tenn. Code Ann. §§ 66-3-305 (a)(2) & 66-3-306.”

Tamala Teague v. Garnette Kidd (Tenn. Ct. App. 2017).

Karen Stoner v. Brittany C. Amburn (Tenn. Ct. App. 2012).

Delta Gypsum, LLC v. Michael Felgemacher (Tenn. Ct. App. 2017).

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