Tennessee Code Annotated
Tenn. Code Ann. § 66-3-306 (2026)
Transfers fraudulent as to present creditors
✓ current as of May 2026
- (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 transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor was insolvent at that time or the debtor became insolvent as a result of the transfer or obligation.
- (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, the debtor was insolvent at that time, and the insider had reasonable cause to believe that the debtor was insolvent.
Acts 2003, ch. 42, § 1.
Notes of Decisions
Cited in 22
cases (5 in the last 5 years), 1984–2026 · leading case: Nippert v. Jackson, 860 F. Supp. 2d 554 (M.D. Tenn. 2012).
Nippert v. Jackson, 860 F. Supp. 2d 554 (M.D. Tenn. 2012). “Tenn. Code Ann. § 66-3-306 (2004). Thus, this section addresses constructive fraud.”
Guinn v. Lines (In Re Trans-Lines West, Inc.), 203 B.R. 653 (Bankr. E.D. Tenn. 1996). “Tenn.Code Ann. § 66-3-306 (1993). Conveyances before debt incurred.”
Webb Mtn, LLC v. Exec. Realty P'ship, L.P. (In Re Webb Mtn, LLC), 420 B.R. 418 (Bankr. E.D. Tenn. 2009). “§ 544 (b) (2006); (2) if so, whether the release from escrow and/or the recording of the Franklin Quit Claim Deed regarding the 1,445 acre Franklin Tract on September 18, 2007, is avoidable by the Plaintiff pursuant to Tennessee Code Annotated § 66-3-305 (2004) and/or Tennessee…”
Paris v. Walker (In re Walker), 566 B.R. 503 (Bankr. E.D. Tenn. 2017). “Tenn. Code Ann. § 66-3-306 (a). If a trustee seeks any remedy available under TFTA section 308, he or she must bring the cause of action within four years after the transfer was made or the obligation was incurred.”
Fed. Deposit Ins. Corp. v. Allen, 584 F. Supp. 386 (E.D. Tenn. 1984). “, and the main purpose in setting up Valley Rental was to use that company to borrow money.”
Webb Mtn, LLC v. Exec. Realty P'ship (In Re Webb Mtn, LLC), 414 B.R. 308 (Bankr. E.D. Tenn. 2009). “Tenn.Code Ann. § 66-3-306. Reading the two constructive fraud statutes together, they require proof that: The debtor did not receive reasonably equivalent value in exchange for the transfer; and (1) the debtor was engaged in or about to engage in business or transaction for…”
Farinash v. Silvey (In Re Silvey), 378 B.R. 186 (Bankr. E.D. Tenn. 2007). “Tenn.Code Ann. §§ 66-3-306 & 66-3-101; see In re Turner, 78 B.”
Crocker v. Ryan, 914 S.W.2d 551 (Tenn. Ct. App. 1995). “Ryan was not rendered insolvent by the transfer, it was not fraudulent under the provisions of Tenn.Code Ann. § 66-3-305. 1 There are, however, other sections of the Code that render certain conveyances fraudulent as to present or future creditors.”
In Re Turner, 78 B.R. 166 (Bankr. E.D. Tenn. 1987). “Tenn.Code Ann. § 66-3-306. The third constructive fraud statute requires proof *169 that the transfer was made or the debt incurred by a debtor when she intended or believed that she would incur debts beyond her ability to pay as they matured.”
Brown v. Riley (In Re Omni Mech. Contractors, Inc.), 114 B.R. 518 (Bankr. E.D. Tenn. 1990). “§ 66-3-306. Insolvency is defined in § 66-3-302 of the Act as follows: A person is insolvent when the present fair salable value of his assets is less than the amount that will be required to pay his probable liability on his existing debts as they become absolute and matured.”
Delta Gypsum, LLC v. Michael Felgemacher (Tenn. Ct. App. 2017). “The trial court found the supplier was unable to satisfy the elements of either the actual fraud statute, Tenn. Code Ann. § 66-3-305 (a)(1), or the constructive fraud statute, Tenn.”
Auto. Experts, Inc. v. Kallberg (M.D. Tenn. 2021). “Fraudulent Conveyance under Tenn. Code Ann. § 66-3-306 (a), and IV) Fraudulent Conveyance under Tenn.”
— Tenn. Code Ann. § 66-3-306(a) — 5 cases
Webb Mtn, LLC v. Exec. Realty P'ship, L.P. (In Re Webb Mtn, LLC), 420 B.R. 418 (Bankr. E.D. Tenn. 2009). “§ 544 (b) (2006); (2) if so, whether the release from escrow and/or the recording of the Franklin Quit Claim Deed regarding the 1,445 acre Franklin Tract on September 18, 2007, is avoidable by the Plaintiff pursuant to Tennessee Code Annotated § 66-3-305 (2004) and/or Tennessee…”
Mostoller v. Garrett (Bankr. E.D. Tenn. 2022).
Lindsey v. Collier (M.D. Tenn. 2021).
Larry Carson Hale, Jr. v. Eighteen Ninety-Six, LLC (Bankr. N.D. Ga. 2026).
Karen Stoner v. Brittany C. Amburn (Tenn. Ct. App. 2012).
— Tenn. Code Ann. § 66-3-306(b) — 1 case
Lindsey v. Collier (M.D. Tenn. 2021).
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