Unreasonably Liberal Loan To Owner May Be A Fraudulent Transfer

Jon Alper Uncategorized

A business owner wants to protect the business’s assets, mostly cash, from a creditor that is suing the business. He wants to transfer the business’s cash to himself, the owner, but is concerned that the transfer may look like a fraudulent conveyance from the business to himself. So, he has the business loan him the cash and he executes a …

Exemptions From Criminal Restitution Orders: An Update

Jon Alper Uncategorized

I want to update a 2015  post on the subject of  federal criminal restitution collection.  I wrote that state law exemptions such as Florida homestead would not stand up against federal collection, but that state property law would apply so that tenants by entireties assets would be exempt from restitution orders against one spouse. I had recently to address the …

Delaware Law Prohibits Bank Account Garnishments

Jon Alper Writ Of Garnishment

Delaware banking laws can provide  protection from bank garnishment and judgment collection. Section 3502 (b) of Delaware Statues provides that banks and trust companies in Delaware shall not be subject to the attachment laws. The statute is over a century old having been enacted in 1871. In most respects a Delaware bank account is no different than accounts at popular …

Does The Fraudulent Loan Statute Pertain To Money Lending?

Jon Alper Creditor Rights

Suppose a judgment debtor pays a significant amount of cash to a relative or business insider and says that the money transfer is to repay a loan. The relative or insider did previously give money to the debtor, but suppose the debtor never paid back any of the loan, never paid interest, and the debtor cannot produce a promissory note. …

United States May Garnish Wages of Head of Household To Collect Criminal Restitution

Jon Alper Florida Exemptions

A client entered into a criminal plea agreement three years ago stemming from his violation of federal securities laws. The plea agreement included restitution to the victims of his wrongdoing. There is a money judgment against the client for restitution. The client wants to know if the restitution judgment may be enforced against exempt assets, specifically, his wages as head …

Federal Agency Freezes Defendant’s Assets Before Adjudication

Jon Alper Creditor Rights

A new client contacted me because his bank accounts were attached and frozen by a U.S. federal agency that had recently filed a lawsuit against him seeking civil damages for his violation of certain federal regulatory laws. He wanted to know how the government could effectively freeze his assets without him first having the chance to defend himself against their …

Creditor Can Cause Sheriff To Take Forcibly All Debtor’s Personal Possessions

Jon Alper Creditor Rights

Clients sometimes ask me whether a judgment creditor can take personal property in their home such as furniture and jewelry. The answer is that a creditor can obtain what is known as a “break order” to authorize the sheriff to remove your personal property. The Florida homestead exemption does not extend to protect tangible personal items inside the homestead. Some …

Supreme Court: Fraudulent Transfer Debts Not Dischargeable In Bankruptcy

Jon Alper Uncategorized

A bankruptcy debtor cannot discharge debts incurred by false representation or actual fraud. Appellate court decisions split as to whether a debt incurred as part of a fraudulent transfer of assets is included in the category of “actual fraud” that may not be discharged in bankruptcy. Some courts have held that actual fraud in the bankruptcy Code refers to common …