---
kind: "section"
citation: "28 U.S.C. § 3304"
title: "28"
title_heading: "Judiciary and Judicial Procedure"
number: "3304"
heading: "Transfer fraudulent as to a debt to the United States"
release: "119-102"
url: "https://uscodex.org/usc/28/3304"
units:
  - "Part VI — Particular Proceedings"
  - "Chapter 176 — Federal Debt Collection Procedure"
  - "Subchapter D — Fraudulent Transfers Involving Debts"
---

# §3304. Transfer fraudulent as to a debt to the United States

- (a) **Debt Arising Before Transfer.—** Except as provided in [section 3307](/usc/28/3307.md), a transfer made [or](/usc/28/3003.md?p=a-2) obligation incurred by a [debtor](/usc/28/3002.md?p=4) is fraudulent as to a [debt](/usc/28/3002.md?p=3) to the [United States](/usc/28/3002.md?p=15) which arises before the transfer is made [or](/usc/28/3003.md?p=a-2) the obligation is incurred if—
  - (1)
    - (A) the [debtor](/usc/28/3002.md?p=4) makes the transfer [or](/usc/28/3003.md?p=a-2) incurs the obligation without receiving a reasonably equivalent value in exchange for the transfer [or](/usc/28/3003.md?p=a-2) obligation; and
    - (B) the [debtor](/usc/28/3002.md?p=4) is insolvent at that time [or](/usc/28/3003.md?p=a-2) the [debtor](/usc/28/3002.md?p=4) becomes insolvent as a result of the transfer [or](/usc/28/3003.md?p=a-2) obligation; [or](/usc/28/3003.md?p=a-2)
  - (2)
    - (A) the transfer was made to an [insider](/usc/28/3301.md?p=5) for an antecedent [debt](/usc/28/3002.md?p=3), the [debtor](/usc/28/3002.md?p=4) was insolvent at the time; and
    - (B) the [insider](/usc/28/3301.md?p=5) had reasonable cause to believe that the [debtor](/usc/28/3002.md?p=4) was insolvent.
- (b) **Transfers Without Regard to Date of Judgment.—**
  - (1) Except as provided in [section 3307](/usc/28/3307.md), a transfer made [or](/usc/28/3003.md?p=a-2) obligation incurred by a [debtor](/usc/28/3002.md?p=4) is fraudulent as to a [debt](/usc/28/3002.md?p=3) to the [United States](/usc/28/3002.md?p=15), whether such [debt](/usc/28/3002.md?p=3) arises before [or](/usc/28/3003.md?p=a-2) after the transfer is made [or](/usc/28/3003.md?p=a-2) the obligation is incurred, if the [debtor](/usc/28/3002.md?p=4) makes the transfer [or](/usc/28/3003.md?p=a-2) incurs the obligation—
    - (A) with actual intent to hinder, delay, [or](/usc/28/3003.md?p=a-2) defraud a [creditor](/usc/28/3301.md?p=4); [or](/usc/28/3003.md?p=a-2)
    - (B) without receiving a reasonably equivalent value in exchange for the transfer [or](/usc/28/3003.md?p=a-2) obligation if the [debtor](/usc/28/3002.md?p=4)—
      - (i) was engaged [or](/usc/28/3003.md?p=a-2) was about to engage in a business [or](/usc/28/3003.md?p=a-2) a transaction for which the remaining [assets](/usc/28/3301.md?p=2) of the [debtor](/usc/28/3002.md?p=4) were unreasonably small in relation to the business [or](/usc/28/3003.md?p=a-2) transaction; [or](/usc/28/3003.md?p=a-2)
      - (ii) intended to incur, [or](/usc/28/3003.md?p=a-2) believed [or](/usc/28/3003.md?p=a-2) reasonably should have believed that he would incur, [debts](/usc/28/3002.md?p=3) beyond his ability to pay as they became due.
  - (2) In determining actual intent under [paragraph (1)](#b-1), consideration may be given, among other factors, to whether—
    - (A) the transfer [or](/usc/28/3003.md?p=a-2) obligation was to an [insider](/usc/28/3301.md?p=5);
    - (B) the [debtor](/usc/28/3002.md?p=4) retained possession [or](/usc/28/3003.md?p=a-2) control of the [property](/usc/28/3002.md?p=12) transferred after the transfer;
    - (C) the transfer [or](/usc/28/3003.md?p=a-2) obligation was disclosed [or](/usc/28/3003.md?p=a-2) concealed;
    - (D) before the transfer was made [or](/usc/28/3003.md?p=a-2) obligation was incurred, the [debtor](/usc/28/3002.md?p=4) had been sued [or](/usc/28/3003.md?p=a-2) threatened with suit;
    - (E) the transfer was of substantially all the [debtor](/usc/28/3002.md?p=4)’s [assets](/usc/28/3301.md?p=2);
    - (F) the [debtor](/usc/28/3002.md?p=4) absconded;
    - (G) the [debtor](/usc/28/3002.md?p=4) removed [or](/usc/28/3003.md?p=a-2) concealed [assets](/usc/28/3301.md?p=2);
    - (H) the value of the consideration received by the [debtor](/usc/28/3002.md?p=4) was reasonably equivalent to the value of the [asset](/usc/28/3301.md?p=2) transferred [or](/usc/28/3003.md?p=a-2) the amount of the obligation incurred;
    - (I) the [debtor](/usc/28/3002.md?p=4) was insolvent [or](/usc/28/3003.md?p=a-2) became insolvent shortly after the transfer was made [or](/usc/28/3003.md?p=a-2) the obligation was incurred;
    - (J) the transfer occurred shortly before [or](/usc/28/3003.md?p=a-2) shortly after a substantial [debt](/usc/28/3002.md?p=3) was incurred; and
    - (K) the [debtor](/usc/28/3002.md?p=4) transferred the essential [assets](/usc/28/3301.md?p=2) of the business to a lienor who transferred the [assets](/usc/28/3301.md?p=2) to an [insider](/usc/28/3301.md?p=5) of the [debtor](/usc/28/3002.md?p=4).

## Source credit

(Added Pub. L. 101–647, title XXXVI, § 3611, Nov. 29, 1990, 104 Stat. 4961.)

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective 180 days after Nov. 29, 1990, and applicable with respect to certain actions for debts owed the United States pending in court on that effective date, see section 3631 of Pub. L. 101–647, set out as a note under section 3001 of this title.