Is a transfer of an overencumbered asset with actual intent to defraud creditors an avoidable transfer?

Working away on my 9th Circuit Case Summaries (before the Lakers game starts).  Stadtmueller v. Sarkisian (In re Medina), — B.R. —, 2020 WL 4742491 (9th Cir. BAP  Aug, 2020) caught my eye.  The transferor relied on and the BAP discussed a California case Mehrtash v. Mehrtash, 93 Cal. App. 4th 75, 80 (2001).  There the debtor transferred a home which was over-encumbered.  The BAP noted that CCC section 3439.01(m) defines asset as “Asset’ means property of a debtor, but the term does not include the following: (1) Property to the extent it is encumbered by a valid lien.”  The California court ruled in Mehrtash (according to the BAP) that the transfer could not be unwound even if made with actual fraud because the home is not an “asset” under the UVTA.  That does not mean that unwinding an actual fraud transfer requires a showing of damages.

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