Deposit Into Entireties Accounts Of Profit Distributions: Is this Fraudulent Conversion? Individually Owned Company

Jon Alper Fraudulent Transfers

Physician and attorney practices through corporations or LLCs can be owned only by licensed professionals. Therefore, the professional cannot own his business in most cases jointly with his spouse who is not also licensed in the same profession. Profit distributions from the professional practice are paid to the professional spouse who owns the business. These distributions are non-exempt money in …

Fraudlent Transfers: Defending Transfers Of Non-Exempt Assets To LLC/Partnership As Fair Trade For Valuable LLC/Partnership Interests

Jon Alper Fraudulent Transfers

One of most important indicators of a fraudulent transfer is the receipt of value as consideration for the transfer. If a debtor transfers title to a person or entity and receives nothing in return the transfer is susceptible to fraudulent transfer allegation, but if the debtor receives consideration reasonable equivalent value the transfer appears more as a “fair trade” rather …

Federal Court Order Distinguishing Fraudulent Transfers From Common Law Fraud

Jon Alper Fraudulent Transfers

People often confuse a fraudulent transfer in asset protection or bankruptcy law with the crime of fraud or common law civil fraud. Common law fraud or criminal fraud are types of “evil fraud.” This type of fraud involves intentional deceit or cheating of innocent victims. The fraud involves intent to harm and the victim suffers damages. The judicial remedy is …

Fraudulent Transfers: Exception To Four Year Statute of Limitations

Jon Alper Fraudulent Transfers

As a general rule, a creditor cannot challenge as a fraudulent conveyance any transfers of assets made more than four years ago. I use the four year statute of limitation applicable to fraudulent transfers and conversions as a planning guideline and do not advise most clients to consider additional asset protection tools to protect transfers four years in the past.