A debtor owned a series of single member Delaware limited liability company. Delaware law provides that the charging lien is the exclusive creditor remedy to attack all LLCs regardless of the number of members. Most other states including Florida provide that a creditor can foreclose the debtor’s interest in a…
Many of my Florida clients need asset protection planning to protect themselves against claims in another state. A creditor that obtains a judgment in another state can enforce the foreign judgment through Florida’s courts to collect money from the debtor residing in Florida.
Many small business loans from banks are secured by the business’s tangible personal property including office furniture, equipment, and inventory. The lender typically records a UCC 1 to give public notice of its lien and security interest in the debtor’s property.
garnishment execution judgment
A judge has broad equitable powers to enforce judgments and recover fraudulent transfers. Suppose a debtor moves money and other financial assets beyond a creditor’s reach making more difficult for the judgment creditor to recover the assets to satisfy the judgment.
Most people bank at local branches of traditional banks, such as Sun Trust, Bank of America, etc. A judgment creditor can garnish funds in any of the debtor’s bank accounts by serving a writ of garnishment on the bank. One of my clients banks only at so-called “internet banks,” such…
Your judgment creditor cannot levy upon a car which you lease because you do not have title to the car. True, most of the time.
Debtors fear court imposed asset freezes prior to judgment. If a creditor can convince a court to freeze a debtor’s assets after the creditor files a lawsuit but before the cases is decided and judgment is entered the debtor cannot engage in further asset protection planning. For instance, a court…
A judgment creditor can levy upon a debtor’s stock in a corporation. After gaining possession of the stock the creditor can take all the assets of the corporation, such as bank accounts and accounts receivable, and the creditor can close the corporate business.
A man called me the other day with a question about his car which had been seized by his creditor. The sheriff towed the car. The creditor told this man that the car would be sold at an auction. The man had learned that Florida law exempts $1,000 of car equity….
