Change Financial Firms To Cure Defective Tenants by Entireties Registration

One this week’s clients made a mistake when he opened a financial account. On the account application he checked the ownership title box labeled “jtwros” ( joint tenants with rights of survivorship) when two below there was another box labeled “tenants by the entireties”. Florida law presumes a jtwros account is a T by E …

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Are Fraudulent Transfer Debts Dischargeable In Bankruptcy?

A bankruptcy debtor cannot discharge debts incurred by false representation or actual fraud. Appellate court decisions split as to whether a debt incurred as part of a fraudulent transfer of assets is included in the category of “actual fraud” that may not be discharged in bankruptcy. Some courts have held that actual fraud in the …

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Statute of Limitations After Discovery of A Fraudulent Transfer

Creditor actions for fraudulent transfers must be brought within four years of the transfer pursuant to Florida Statute 726.110. There is a “savings clause” that gives creditors no less than one year to file an action after they discover the transfer regardless of whether the transfer occurred more than four years ago. There is a …

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Conveyances By Non-Debtor Co-Owner May Be Fraudulent Transfers

Consider a debtor who jointly owns a non-exempt asset with a non-debtor. The non-debtor is not his spouse so there is no tenants by entireties exemption. The non-debtor owner is able to transfer the asset without the debtor’s signature. The debtor suggest that he would not be making a fraudulent transfer if the non-debtor co-owner …

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Converting Florida Homestead To Income Producing Rental Property

One of my clients owned a Florida homestead which he wants to convert to a rental property. He plans to himself rent a smaller home and live on net rental income from the former homestead. He suggested to me transferring the homestead to an LLC that he would own with his brother whom he trusts …

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Which State Has Jurisdiction Over Fraudulent Transfer Action?

A creditor considering a fraudulent transfer action against a debtor’s transfer of real estate has to consider where to file the lawsuit. The issue becomes interesting when the debtor, the debtor’s property, and the recipient (transferee) of the property are each located in a different state, or if all in Florida, different Florida counties.

Does Asset Appreciation After A Fraudulent Transfer Affect Transferee?

The fraudulent transfer statutes give the creditor the right to sue the transferee for the value of the asset transferred. A creditor may get a judgment against the initial transferee who receives the asset. One of my clients asked me whether an increase in value of the asset after the transfer leaves the transferee liable …

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Court Says Company Issuance of New Stock To Dilute Debtor’s Shares is Fraudulent Transfer

A creditor may have the Sheriff levy upon stock in a corporation held in the debtor’s name. One debtor thought he could effectively protect his stock by causing the corporation to issues substantial amounts of new stock to his wife for a nominal amount of money thereby diluting and devaluing the stock he owned subject …

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Other States Permit Punitive Damages For Fraudulent Transfers

When first faced with the possibility of being sued many people’s first reaction is to transfer their assets to someone else or to a legal entity. A common question is whether such a transfer later found to be a fraudulent conveyance may increase the debtor’s liability for money damages. The answer depends upon where the …

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