Suppose an employee has a stock purchase plan with his employer under IRS Code 423. The employer’s stock is publically traded. The plan gives the employee the option to receive stock in the employer company at a discount to the then-current market value. The value of the discounted stock is…
Yes, in most cases, withdrawals or distributions from retirement accounts are protected even after being deposited into a bank account. The protection is dependent on state law. Florida case law protects retirement funds even after being deposited into a bank account. Other states may not afford the same protection to…
A client wanted to know whether his commissions would be exempt from garnishment as head of household income even though the commissions were paid on a 1099 and the client was considered an independent contractor. What is the Head of Household Exemption? Florida Statute 222.11 exempts from garnishment any earnings…
The general rule is that Florida residents cannot export Florida asset exemptions to other states. Therefore, out of state, or “foreign” judgments pose unique risks to judgment debtors living in Florida. Even though the judgment debtor lives in Florida, the judgment creditor could start judgment collection proceedings in the foreign…
Several people in the last week have asked whether a judgment creditor can garnish their stimulus check. The latest COVID relief bill provides some people with up to $1,400 per person, plus an additional amount for having dependents. Once deposited into your bank account, this money is not safe from…
Florida law exempts many assets from execution by a judgment creditor including intangible personal property including life insurance and annuities. Section 222.14 of the Florida statutes exempts cash value life insurance, annuities and annuity proceeds that were issued to citizens or residents of Florida. Most other states do not exempt…
The general mantra for married couples in Florida is “joint assets, separate liabilities.” Owning assets jointly takes advantage of tenants by entireties protection against either spouse’s separate debt. But does that mantra extend to a couple’s vehiciles? Generally no. Unlike most personal property, vehicles are a common source of joint…
Some debtors are surprised when I tell them that the household furnishings and clothing they used on a daily basis are not exempt from their judgment creditors. Some people think that Florida law permits them to own their basic tools of living such as the clothes they wear, their children’s…
One of my new clients had been sued by the Federal Trade Commission for a violation of their statutes pertaining to telephone sales including alleged common law fraud against the victims. A federal court entered a judgment against my client for several millions of dollars damages including an award of…
An attorney called me for help collecting several judgments against the same individual debtor. The debtor’s principal asset was his retirement account. Retirement accounts are exempt in Florida pursuant to Florida statutes. The attorney wanted to know if a the debtor’s signature to loan documents which included a general waiver…
