I was in a deposition today representing a lady who was the recipient, transferee, of an alleged fraudulent transfer. The allegations are unique; here’s what happened.
A new client presented a plan to undo a potentially fraudulent transfer. Client and spouse had used a joint line of credit from a bank to borrow money for several investments. Some investments made in companies owned solely by husband made a profit. These companies distributed some profits to husband who, in turn, conveyed the profits to other companies owned …
If a debtor fraudulently transfers property to a third party, and the creditor expends legal fees recovering the property in a proceeding supplementary, can the creditor recover its attorneys fees from the third party who received and was in possession of the property.
An email asked if the transfer of a personal residence from a land trust to the beneficiary of the land trust who resides on the property is a fraudulent conveyance under Florida law.
A client was contemplating what seemed to be a safe asset transfer that could have inadvertently subjected his wife to personal liability. The client had sold a company for substantial amounts of cash and then put half of the proceeds in a jointly owned investment account. The wife had substantial assets in her own name. Subsequently, the husband was sued. …
The homestead protection afforded Florida residents is being tested in a Florida bankruptcy proceeding.
There is a common misconception that a party has to either have filed a lawsuit against you or has a judgment against you to be considered your creditor for purposes of fraudulent conveyance law. Transfers or conversions of assets to evade creditors can be reversed or the transferee sued for the value of the conveyance.
It is possible to successfully defend allegations that you fraudulently transferred assets to avoid creditors. Take the case, for example, of Thomas J. Meyer who filed bankruptcy in Illinois.
In May, 2003, The Eleventh Circuit Court of Appeals certified to the Florida Supreme Court the question of whether under Florida’s Uniform Fraudulent Transfer Act or FUFTA there is a cause of action for aiding and abetting a fraudulent transfer when the alleged aider-abettor is not a transferee. The Supreme Court’s unanimous answer in Lewis B. Freemen, etc., et al., …
Some creditors have tried to sue debtor’s attorneys and financial advisors for assisting the debtor in making fraudulent transfers. Creditors have tried to sue the debtors’ third party advisers for conspiracy to make fraudulent transfers or for aiding and abetting a fraudulent transfer.