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 …

Conveyances By Non-Debtor Co-Owner May Be Fraudulent TransfersRead More

The statute of limitations for creditors’ fraudulent transfer actions is four years. However, a recent Florida case holds that the four year limit does not apply to fraudulent transfer claims brought in the context of Proceedings Supplementary. Creditors can challenge transfers at any time during the 20 year life of a civil judgment.

Proceedings Supplementary Extend Statute of Limitations For Fraudulent TransfersRead More

I cannot recall how many times a client has suggested protecting cash from a creditor or a bankruptcy trustee by withdrawing the cash from his bank account and then telling the creditor, judge, or bankruptcy trustee that the cash was spent or lost at the casino. The problem is that judges do not find debtor’s …

Spending or Gambling Cash Not Excuse For Non-Compliance with Court OrderRead More

Another attorney told me about his  Florida client anticipating a lawsuit by a creditor located in a foreign state (outside Florida) considers forming an LLC and conveying assets out of the debtor’s name to the LLC . The client accepts the risk that a creditor may challenge the conveyance as a fraudulent transfer. The attorney …

Planning To Avoid Federal Court Jurisdiction Over Fraudulent TransfersRead More

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.

Which State Has Jurisdiction Over Fraudulent Transfer Action?Read More

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 …

Does Asset Appreciation After A Fraudulent Transfer Affect Transferee?Read More

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 …

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

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 …

Other States Permit Punitive Damages For Fraudulent TransfersRead More

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 sold and the new …

Moving Protected Homestead Equity From Another State to A Florida Homestead PropertyRead More