Non-Consumer Related Civil Judgments Will Not Affect Credit Rating

Jon Alper Creditor Rights

Client frequently are concerned about the effect on their credit rating of a civil judgment for damages when the judgment comes from a business dispute or a business debt. . Civil judgments appear on credit reports. Clients have asked what effect the judgment will have on their credit worthiness. I have always explained the clients that credit scoring is not …

Federal Government Garnishment and Debt Collection

Jon Alper Creditor Rights

One of my clients was sued by the Federal Trade Commission for a violation of their rules. The FTC obtained a large monetary judgment.  There is a federal statute permitting the U.S. government to garnish wages and bank accounts. The federal garnishment statute provides less debtor protections than Florida’s garnishment laws.  For instance, the government may garnish 15% of wages …

Creditor May Levy Upon Debtor’s Lawsuit Against A Third Pary

Jon Alper Creditor Rights

My client is suing his former business partner for over $ 1 million. The lawsuit is scheduled for trial in about six months. The same client has a judgment already entered against him in favor of a bank that lent him money for a real estate investment. My client hopes to recover money from his partner and use those funds …

Creditor May Enforce Debtor’s Written Waiver Of Exemptions

Jon Alper Florida Exemptions

An attorney called me for help collecting several judgments against the same individual debtor. The debtor’s principal asset was his retirement account. Retirement accounts are exempt in Florida pursuant to Florida statutes. The attorney wanted to know if a the debtor’s signature to loan documents which included a general waiver of exemptions from judgment execution was enforceable to the extent …

Court Finds Fraudulent Conveyance in Spouses’ Property Exchange To Entireties

Jon Alper Fraudulent Transfers

When a husband and wife own separate individual assets and one of the spouses is a defendant in litigation a common asset protection planning strategy is to title all the respectively owned separate assets in to tenants by entireties. Tenants by entireties (TE) assets are exempt from claims against either of the individual spouses. This asset protection technique would enable …

Judgment Creditor Can Take Over Debtor’s Lawsuits and Claims

Jon Alper Creditor Rights

A civil judgment is entered against you. At the same time, you are a plaintiff in an unrelated lawsuit where you are pursuing damages against an unrelated third party. Can your judgment creditor take over your lawsuit and apply a recovery to satisfy the judgment? Yes. By first opening a proceedings supplementary under Section 56.29 of the Florida Statutes your …

Amendment of Trust May Be A Fraudulent Conveyance

Jon Alper Uncategorized

I received a call from someone who said they had money and stocks in a financial account titled in the name of a revocable living trust created by the caller as part of her estate planning. The caller and her spouse were named as the trust beneficiaries. The caller expected to be sued by a bank for her default on …

Present Value Defense To Fraudulent Transfer Allegations

Jon Alper Fraudulent Transfers

A profitable business corporation faced imminent civil judgment. The principal owner of the company owned additional corporations engaged in a related business. The owner hired an attorney to represent the primary business and the related business. The owner hired the attorney to do legal work for the other, related business that were not involved in civil litigation. The owner paid …

LLC Charging Liens Applicability To Withdrawal of Capital Contributions

Jon Alper Uncategorized

LLCs are useful asset protection tools because Florida law limits a creditor’s  remedy to a charging lien on distributions to LLC members. One of my clients was relocating to Ohio and asked if he would get the same LLC asset protection after he became an Ohio resident owning a Florida LLC. I explained that the collection and asset protection laws …