A fraudulent transfer refers to the act of intentionally transferring money or assets to another party to avoid them being seized by creditors or in anticipation of a lawsuit. This typically occurs when a debtor tries to place assets beyond the reach of creditors by transferring them to family members, friends, or into a trust, often for less than their true value.
These transfers are scrutinized under law, and if deemed fraudulent, courts can reverse the transaction to ensure fair debt collection. The main criteria for determining if a transfer is fraudulent include the timing of the transfer relative to the creditor’s claim and the financial condition of the debtor at the time of the transfer.
A debtor can transfer assets to a non-debtor at any time including after a creditor has filed a lawsuit and even after the court has awarded a money judgment against the debtor. Such late asset…
Judgment debtors often discover that a creditor’s judgment includes substantial amounts of money accrued or incurred after the court issued the judgment. These post-judgment charges can include attorneys fees awarded to the creditor’s attorney. Florida…
Existing Laws on Florida Homestead Protection and Fraudulent Conveyance It is well-settled Florida law that the purchase or improvement of a Florida homestead cannot be set aside as a fraudulent conveyance. The Florida Supreme Court…
Collection of money judgments is conducted through proceedings supplementary under Florida Statute 56.29. The proceedings supplementary statutes include procedures to remedy the debtor’s fraudulent transfers of personal property. (56.29 (3). Fraudulent transfers are also addressed…
I’ve warned many clients against making fraudulent transfers of money to their non-debtor spouse or to tenants by entireties with their spouse. A creditor may get a general money judgment against the non-debtor spouse for…
A client asked me if transferring money to an offshore bank account after a creditor filed a collection lawsuit is a fraudulent transfer. Not all actions to protect assets from known creditors fall withing the…
An attorney called for help collecting a debt. The debtor had owned a piece of commercial property in a revocable living trust that had been established as part of an estate plan. The trust provided…
A debtor expects to inherit a significant amount of assets from a parent while he is already subject to a civil judgment. The debtor is concerned that the inherited assets will be exposed to his…
Creditor actions for fraudulent transfers must be brought within four years of the transfer pursuant to Florida Statute 726.110. There is a “savings clause” that gives creditors no less than one year to file an…
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…
