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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 39175
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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does having a tolling agreement signed re a legal malpractice

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does having a tolling agreement signed re: a legal malpractice lawsuit "count" as a claim against a debtor when determining a fraudulent conveyance? ie. should that be considered fair warning that there is trouble and potential agreement

A general tolling agreement suspends time limitations on all causes of action. A fraudulent transfer action has a four year statute of limitations under the Uniform Fraudulent Transfer Act. So, even if it weren't included as part of the tolling agreement, you would have more than sufficient time to sue, because the transfer to the trust during the time when a claim is likely, would only just now start the 4-year statute of limitation.


Hope this helps.


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Customer: replied 7 years ago.
Thanks for trying to answer, i guess i didn't write clearly. I dont need a definition of tolling agrrement. My question is -- would either or both multiple tolling agreements executed regarding a potential legal malpractice suit and previous to that, a demand letter sent for $100,000 of fees QUALIFY as proof that there was a pending or threatened action against the debtor ( in this case my ex attorney)?

For fraudulent transfer, I read that you have to SHOW that there was a "known creditor". In another words, is a demand letter and/or multiple tolling agreements re: legal mal suit STRONG enough to show that i am a potential creditor or would i actually have had to file the lawsuit?


The tolling agreement, by itself, demonstrates that there is a creditor claim actually in existence. This is more than sufficient to satisfy the claim element for a fraudulent transfer -- as is a demand letter.


Hope this helps.

socrateaser and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 7 years ago.
Perfect. I just wanted to say thanks! You've saved me from having to further research this. It does make logical sense. Ok, off for some sunshine, thank you again for your services,

You're welcome and happy Independence Day.