Fraudulent Transfers

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…

Moving Protected Homestead Equity From Another State to A Florida Homestead Property

Selling an exempt homestead in one state in order to move in to a new Florida homestead can be tricky. One must be careful to preserve the  protection of current homestead while it is on the market and also protect a Florida property that is purchased before the old home…

Is Debtor’s Deposit of His Own Money To Joint Bank Account A Fraudulent Transfer?

Generally, when a spouse who is subject to a money judgment transfers his separate property to joint ownership with his non-debtor spouse, the transfer is subject to challenge as a fraudulent conveyance. The issue is complicated when the debtor spouse deposits money he earned himself in to a pre-existing joint…

Court Calls Divorce Asset Distributions A Fraudulent Transfer

Often, clients facing a significant judgments ask me whether they should divorce their spouse for asset protection. They consider a legal divorce in which their non-debtor spouse would receive all of the debtor’s non-exempt assets. The issue is whether a court’s divorce decree immunizes the debtor and his ex-spouse from…

Can U.S. Government Be Sued For Receipt of Fraudulent Transfer?

Here’s is an interesting case where a bankruptcy trustee sued the U.S. government for their receipt of a fraudulent transfer. Within two years of filing bankruptcy a company, taxable as an S-Corp, paid the IRS money to satisfy their owners’ tax liability attributable to company income. The bankruptcy trustee argued…

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Bankruptcy Court Says No Claims Permitted For Conspiracy or Aiding And Abetting Fraudulent Transfers

A recent bankruptcy court decision addressed the issue of whether people who assist a debtor’s pre-bankruptcy fraudulent transfers can be held liable for damages in the bankruptcy proceeding. In this case, a trustee hired to liquidate debtor property filed a complaint pursuant to Section 544(b) of the Bankruptcy Code against…

Temporary Restraining Order Freeze Against Persons Assisting Suspected Fraudulent Transfer

A creditor cannot levy upon or freeze your assets until the creditor obtains a civil judgment against you. The creditor cannot go after your assets just because he has filed a lawsuit and you are defending the suit. That is the general rule.