A cause of action for creditor fraud does not exist, and plaintiffs who allege fraud must prove both reliance and misrepresentation; the scenarios to which courts have applied the creditor fraud label are remediable by way of other causes of action; where the bank alleged that the debtor's attorney advised him to transfer assets and issued a misleading opinion letter, the attorney may be liable for conspiracy to violate the Uniform Fraudulent Transfer Act and for misrepresentation.
July 04, 2005 at 12:00 AM
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