---
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"
date: "2026-07-12"
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 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 the obligation is incurred if—
  - (1)
    - (A) the [debtor](/usc/28/3002.md?p=4) makes the transfer or incurs the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation; and
    - (B) the [debtor](/usc/28/3002.md?p=4) is insolvent at that time or the [debtor](/usc/28/3002.md?p=4) becomes insolvent as a result of the transfer or obligation; or
  - (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 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 after the transfer is made or the obligation is incurred, if the [debtor](/usc/28/3002.md?p=4) makes the transfer or incurs the obligation—
    - (A) with actual intent to hinder, delay, or defraud a [creditor](/usc/28/3301.md?p=4); or
    - (B) without receiving a reasonably equivalent value in exchange for the transfer or obligation if the [debtor](/usc/28/3002.md?p=4)—
      - (i) was engaged or was about to engage in a business or 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 transaction; or
      - (ii) intended to incur, or believed or 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 obligation was to an [insider](/usc/28/3301.md?p=5);
    - (B) the [debtor](/usc/28/3002.md?p=4) retained possession or control of the [property](/usc/28/3002.md?p=12) transferred after the transfer;
    - (C) the transfer or obligation was disclosed or concealed;
    - (D) before the transfer was made or obligation was incurred, the [debtor](/usc/28/3002.md?p=4) had been sued or 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 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 the amount of the obligation incurred;
    - (I) the [debtor](/usc/28/3002.md?p=4) was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred;
    - (J) the transfer occurred shortly before or 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.