Offshore Planning

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Self-Created Impossibility of Compliance With Bankruptcy Court Orders

A federal bankruptcy court ordered a debtor to turn over to a bankruptcy trustee money the debtor had received from a property auction. Although initially admitting he received the money, at a subsequent contempt hearing the debtor said the had spent the money so there was nothing left to turn over. The court considered whether…

Florida Court Finds Jurisdiction Over Offshore LLC Membership Interest

An important rationale for offshore asset protection is effecting the removal of the debtor’s asset beyond the jurisdiction of U.S. courts. For example, people choose to form LLCs outside the U.S. because they believe a U.S. court would not have jurisdiction over the debtor’s membership interest in order to impose a charging lien. That theory…

Court Issues Charging Lien Against Interest in Foreign LLC

Debtors set up LLCs in foreign countries to protect against creditor charging liens against their membership interest and distributions. During legal research this past week I came across a  Connecticut case where the creditor found a way to effectively attach a debtor’s distributions from LLCs formed outside the U.S.

Offshore Bank Is FDIC Insured: Is This Bank Protected From Client’s U.S. Civil Creditors?

New client is confident he has protected a substantial of cash proceeds from the sale of a business by depositing the money in a bank branch in his native country of Ecuador. He is confident that none of his creditors could figure out how to domesticate a U.S. civil judgment in Ecuador.