State Where Collection Takes Place Governs Collection Law and Procedure

Jon Alper Uncategorized

A civil judgment rendered in one state is enforceable in any other state under the concept of “full faith and credit.” The U.S. Constitution provides that each state must give full faith and credit to a civil order issued in another state’s court. For example, a money judgment issued in a Georgia court can be domesticated in Florida and collected …

Fraudulent Transfers Remedy Under Proceedings Supplementary

Jon Alper Fraudulent Transfers, Uncategorized

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 under a separate statute, Section 726.105. Section 726.110 imposes a four year statute of limitations on fraudulent transfer actions brought under Section 726.105 . I’ve …

Florida Homestead Exemption Not Affected By Commercial Operation on Land

Jon Alper Bankruptcy, Homestead Exemption

Technology has made it easier for people to operate a business at or next to their primary residence. Operating a commercial venture on the property where you reside raises issues about Florida’s homestead exemption from creditors. The issue is whether a Florida resident can operate a commercial business on his homestead property without forfeiting homestead protection. There have been several …

Moving To Florida With Community Property

Jon Alper Uncategorized

I’ve seen recently several clients who are interested in moving to Florida from community property states including California and Arizona. I recently published a post about the status of a non-debtor spouse’s LLC interest that the couple acquired in Texas before moving to Florida. Other clients have asked about other types of community property assets such as joint marital bank …

Bankruptcy Debtor Denied Exemption For Self-Directed IRA

Jon Alper Uncategorized

A self-directed IRA is a personal IRA plan where the owner can invest IRA funds in assets other than marketable securities, such as real estate. There are companies that provide qualifying IRA plan documentation and who hold title to your customized IRA assets. The self-directed plan provisions require that the owner not use IRA money in a manner contrary to …

Using a Foreign State’s Domestic Asset Protection Trust Law in Florida

Jon Alper Uncategorized

Some states, not Florida, have statutes that encourage asset protection trusts. These states’ statutes provide that if a debtor establishes an irrevocable trusts for their own benefit the assets that the debtor conveys to his trust are protected from his creditors. The trustmaker must reside or have significant assets in the state where the trust is settled. I consulted with …

Banks Don’t Have to Help Customers Choose Correct Tenants By Entireties Account

Jon Alper Tenants By Entireties

There are many instances of people who incorrectly believed they had established exempt joint marital bank accounts and later found out that the accounts were not properly protected from creditors. Well-established Florida law exempts tenant by entireties accounts at financial institutions from the creditors of either spouse, but not from joint creditors. Some people make mistakes opening financial accounts because …

Non-Debtor Spouse May Be Liable For Fraudulent Transfer To Entireties Account

Jon Alper Bankruptcy, Fraudulent Transfers

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 the value of assets transferred. The transfer to the spouse risks making the spouse a new defendant in the creditor’s judgment collection. A recent Florida …

What Happens to Community Property Rights When You Become a Florida Resident?

Jon Alper Creditor Rights, Limited Partnerships and LLC

A client, a married man, acquired and owned a LLC membership interest in his own name while living in Texas. He and his wife moved to Florida. A Texas court entered a money judgment against the wife only, and the creditor moved the judgment to Florida. Texas is a community property state; Florida is not a community property state. Under …