Asset Freezes — When Court Can Freeze Defendant’s Assets During Litigation And Prior To Final Judgment

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…

Debtor Who Invades Child’s Minor Account Should Lose Asset Protection Benefits

Totten trusts and UTMA(“uniform gift to minors”) financial accounts have different consequences for asset protection  Totten trusts are not protected from creditors because the accounts could be revoked or invaded by the parent, whereas the UTMA accounts are  protected because deposits made to these accounts are legally irrevocable. The asset…

Tax Issue In Conversion of S-Corporation To Limited Liability Company

Limited liability companies are generally better asset protection entities than corporation. A judgment debtor can levy upon the debtor’s stock in a corporation and in the case of a small corporation possibly stop the corporation business and liquidate corporate assets. In the case of a debtor’s limited liability company interest…

Fraud Exception To Florida Homestead Protection

The Florida Constitution includes three specific exceptions to homestead protection: consensual liens (mortgages); taxes and assessments (homeowners associations) and debts for improvement (mechanics liens). There is an important fourth exception to homestead protection established not in the Constitution but through a history of court decisions. The fourth exception is the…