A creditor may apply for a charging lien against the debtor’s membership interest in an LLC. If the LLC operates a professional business such as a medical practice or law firm, can a creditor who is not licenses in the same profession hold a charging lien against a member’s LLC interest? Continue reading
Can U.S. Government Be Sued For Receipt of Fraudulent Transfer?
Here’s is an interesting case where a bankruptcy trustee sued the U.S. government for their receipt of a fraudulent transfer. Within two years of filing bankruptcy a company, taxable as an S-Corp, paid the IRS money to satisfy their owners’ tax liability attributable to company income. The bankruptcy trustee argued that these tax liability payments were fraudulent transfers, and he sued to U.S. government to recover the money received by the IRS. Continue reading
Can Debtor Get Money From His LLC Subject to Charging Lien?
A debtor forms a two member LLC to operate a family business. A creditor obtains a judgment against the business owner and proceeds to get a charging lien against distributions allocated to the debtor’s share of his LLC. Is there a way for the debtor to obtain money from his LLC after the charging lien? Continue reading
Self-Directed IRA Owns Real Estate Outside Florida
Although most people’s IRAs consist of cash and marketable securities housed at a financial institution people may own real estate in an IRA that is “self-directed.” There are financial companies that set up and administer for a fee self-directed IRAs which allow the owner to buy a wide variety of assets including real estate, currencies, precious metals and commodities. Continue reading
Garnishment of Debtor’s Expense Reimbursement Payments
One of my clients this past month presented a question about exemption money he receives from his employer. The client is a w-2 employee, and he supports his family. The general rule is that his creditors cannot garnish wages because he qualifies as head of household under Florida statutes.
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Florida Bar Asset Protection Seminar
The Florida Bar sponsors an annual Asset Protection Seminar. This year’s seminar will be held in Miami, Florida, on May 16, 2013. I will be on of the featured speakers at this year’s event. Continue reading
Homestead Protection of Condominium Parking Space
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In cities where parking is limited, many condominium units come with dedicated parking spaces. The parking spaces often cost significant amounts of money. One of my clients asked me if his dedicated parking space was protected from creditors as part of his Florida homestead exemption. Continue reading
Disclaimer of Tenants by Entireties on Boat Title
Much has been written about technical procedures for setting up a tenants by entireties account. One of the rules, expressed in several prior court decisions, is that any joint account owned by husband and wife is presumed to be an entireties accounts even if the account title does not state “tenants by entireties” provided however that the debtor did not disclaim or refuse the entireties presumption. Continue reading
Income Tax Liability From Unsolicited Mortgage Release
Bank of America has been forgiving second mortgage loans for primary residences after it entered into a national settlement related to its mortgage foreclosure abuses. BOA has been making unsolicited offers to certain homeowners to release their second mortgage and cancel the indebtedness. Continue reading
Getting Loss and Liability Coverage For LLC or Limited Partnership
Once in a while my clients will call me to say that they are unable to place insurance on real property after they have transferred the property to an LLC or partnership for asset protection purposes. Some insurance companies will not add legal entities on insurance policies issued to individuals. Continue reading