Not Everything a Potential Judgment Debtor Does Constitutes a Fraudulent Transfer

Not everything a potential judgment debtor does constitutes a fraudulent transfer to avoid anticipated collection efforts from a judgment creditor. This does not mean arguments cannot and should not be made. It just means that just because a potential judgment debtor does something does not automatically translate into a fraudulent transfer. In a recent post-judgment collection case, Villamizar v. Luna Capital Partners, LLC, LLC, 43 Fla.L.Weekly D2395a (Fla. 3d DCA 2018), a plaintiff (judgment creditor) recovered a judgment against a defendant on unsecured promissory notes (i.e., the notes were not secured by any mortgage). During the underlying lawsuit, the defendant sold...

11 February

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Homestead Protection does Not Attach to Corporation (as Judgment Debtor Found Out!)

Posted by David Adelstein

in Trial Perspectives

There are times where (potential) judgment debtors try to be way to crafty. And, guess what, it doesn’t always work! A recent case exemplifies this point. In DeJesus v. A.M.J.R.K. Corp., 43 Fla. L. Weekly D331a (Fla. 2d DCA 2017), a plaintiff sued a defendant corporation in a personal injury action. During the litigation, the defendant corporation transferred residential property it owned to its sole shareholder. This was done through a quitclaim deed and was obviously done as a down and dirty asset protection technique. Of course, the quitclaim deed lacked consideration and was defective – the transfer was invalid. The plaintiff...