Attorney Liability & Debtor Liability
Most debtors and their attorneys are concerned about potential personal liability for asset protection planning. Most of the concern relates to prospective transfers and planning which could be deemed to be fraudulent transfers or fraudulent conversion. There are several court decisions in Florida regarding attorney liability for assisting their clients in a fraudulent transfer. These cases have held that neither attorneys or any other third party advisor may be held liable for damages for advising a debtor in regards to a fraudulent transfer. There are also cased dealing with a debtor’s liability for making a transfer or investment which is later reversed pursuant to Florida’s fraudulent transfer statutes. These court decisions have not imposed any additional damages or attorney fee liability upon a judgment debtor found to have transferred or converted assets to defraud, hinder or delay a judgment creditor. In general, concern about additional damages or third party liability for fraudulent transfers often impedes effective asset protection planning in Florida.
Many attorneys are reticent about asset protection work because they fear exposing themselves to personal liability for assisting their clients’ transfer of assets to avoid exposure creditor claims. Florida’s fraudulent conveyance statutes do not specifically... Continue reading