Island of Nevis Substantially Amends LLC Ordinance

The Nevis limited liability company is an effective and efficient offshore asset protection tool. In May, 2015, the Nevis Assembly enacted an important revisions of the Nevis LLC Ordinance. The new law significantly improved asset protection benefits of forming a Nevis LLC. The new law is called the “Nevis Limited Liability Company (Amendment) Ordinance, 2015,”. Continue reading

Are There Benefits From Forming LLC in Delaware?

Some of my clients ask me whether there is an advantage to create an LLC Delaware. There may be benefits to a Delaware LLC, but the advantages are largely misunderstood. Delaware law specifically protects single member LLCs from collection remedies other than charging liens. Many people think that if they form a single member LLC in Delaware their interest would be exempt from a creditor foreclosure in a Florida proceeding. Continue reading

Homestead Proceeds Invested In Marketable Securities May Be An Exempt “Homestead Account.”

The concept of a “homestead account” is well established in Florida. Proceeds from the sale of a Florida homestead property remain exempt for a reasonable time while the homeowner searches for a replacement homestead. The homestead account most often refers to a separate bank account where the owner deposits the sale proceeds. Is protection lost if the owner invests the proceeds in marketable securities. Continue reading

Garnishment of Bank Account Opened Outside of Florida

You would think that debtors’ accounts at a national bank such as BOA or Wells Fargo may be garnished in any state where the bank maintains a branch. I expect most Florida courts would agree, and Florida judges would permit creditors to garnish accounts of Florida debtors held at national banks regardless of whether the debtors opened the account in Florida. Continue reading

Administrative Wage Garnishment To Collect Student Loans

A young attorney practicing in northern Florida wrote me to say that his wages were being garnished by the Department of Education to collect his law school student loans. The Department had not filed suit to collect the loan. He wants to know how they can garnish his wages without having procured first a money judgment and writ of garnishment issued by a Florida court. Continue reading

New York “Separate Entity” Rule And Writs Of Bank Garnishment

One of my client’s recently escaped garnishment of his bank account by New York creditor because of a common law principal in New York known as the “separate entity rule.” The client lived in Virginia and banked at the Virginia branch of a regional banking institution. The bank also had branches in New York City. The creditor obtained a writ of garnishment through a New York court and served the writ on the bank’s New York City branch. Continue reading

Homestead Exemption and Specific Performance For Breach of Sales Contract

A caller stated that he defaulted on a contract to sell his homestead. The contract buyer sued him for specific performance seeking a court order against the seller to complete the sale. The seller asked me if the Florida homestead protection applies to the specific performance suit. The seller tells me that he read that the homestead law means that no one can force him to sell his house. Continue reading