Asset Protection Law Journal

Asset Protection Law Journal

Helping individuals and businesses take advantage of asset protection laws

Category Archives: Fraudulent Conveyances

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Obligations as a Guarantor Could Hinder Your Asset Protection Options

Posted in Fraudulent Conveyances
Signing a personal guaranty for your business or a relative can have a variety of financial implications. It can also limit your asset protection alternatives. Asset protection planning frequently involves the transfer of assets. An asset transfer will be a “fraudulent conveyance” if it renders you insolvent (that is, if it means you may not able to… Continue Reading

Keep Bankruptcy Code §548(e) in Mind if You Have a DAPT

Posted in Domestic Asset Protection Trusts, Fraudulent Conveyances, Ohio Legacy Trusts
About 16 states now have laws that allow a Domestic Asset Protection Trust (DAPT). These trusts can be very useful to protect assets in many situations. But keep in mind that a DAPT (like other asset protection strategies) is designed to protect your assets and keep you out of bankruptcy. It may be less useful… Continue Reading

Lawyers Can Face Severe Consequences For Helping a Client With a Fraudulent Conveyance

Posted in Asset Protection Strategies/Alternatives, Fraudulent Conveyances
Courts in a number of states have specifically held that lawyers can violate applicable disciplinary rules by facilitating fraudulent conveyances.  This can result in an attorney being suspended or even disbarred.  This is one of the reasons that an attorney must conduct a certain amount of due diligence about a new client before agreeing to… Continue Reading

Ohio Court Pierces Corporate Veil and Holds Transfers to Shareholder Were Fraudulent

Posted in Fraudulent Conveyances, Ohio law, Piercing the Corporate Veil
A recent decision by the Ohio Court of Appeals (Second District) held that the City of Springfield, Ohio was entitled to “pierce the corporate veil” of the defendant corporation in order to reach the shareholder’s assets.  The court further held that transfers totaling about $900,000 to its shareholder (proceeds from the corporation’s sale of real… Continue Reading

Bankruptcy Trustee has 10 Years to Challenge Transfer to a DAPT

Posted in Domestic Asset Protection Trusts, Fraudulent Conveyances
A number of states have enacted Domestic Asset Protection Trust (DAPT) legislation.  Ohio may soon join those states.  These statutes authorize what are known as "self settled" trusts.  This essentially means that the person setting up the trust is also one of its beneficiaries.  Thus, the person setting up the trust is attempting to protect… Continue Reading

Disclaiming an Inheritance can Constitue a Fraudulent Conveyance

Posted in Estate Planning, Fraudulent Conveyances
Transferring an asset under certain circumstances can constitute a fraudulent conveyance.  Refusing to accept an asset can also constitute a fraudulent conveyance. Let’s say that you owe a creditor a significant amount of money.  You then learn that you have received a substantial inheritance.  If you take the inheritance it will go to the creditor.  So… Continue Reading

Mortensen Case Highlights Fraudulent Conveyance Issues

Posted in Divorce and Prenuptial Agreements, Domestic Asset Protection Trusts, Fraudulent Conveyances
A recent decision by the United States Bankruptcy Court for the District of Alaska (In Re: Thomas Mortensen, Case No. A09-00565-DMD) is clearly worth reading — for a discussion of fraudulent conveyances, Alaska asset protection trusts, applicable statutes of limitations, and a variety of other asset protection topics.  I will likely comment on this recent case in… Continue Reading

Asset Protection Planning is Often Possible After You Have Creditor Issues

Posted in Asset Protection Strategies/Alternatives, Fraudulent Conveyances
It is clearly better to engage in asset protection planning before you have any creditor issues.  But planning after a lawsuit has been filed — or even after a judgment has been entered against you — is frequently possible. State fraudulent transfer statutes vary in a number of respects.  But as a general rule, a conveyance… Continue Reading

Creditors Have Many Options Once They Have a Judgment Against You

Posted in Creditors' Rights, Fraudulent Conveyances, Ohio law
An article in the September 20, 2009 Business section of the Cleveland Plain Dealer contains a good summary of the various remedies available to a creditor who has a judgment against you.  Cleveland Plain Dealer columnist Sheryl Harris is discussing a $3,000 judgment obtained in a small claims court in Rocky River, Ohio; but the… Continue Reading

Fraudulent Conveyances

Posted in Fraudulent Conveyances, Ohio law
Asset protection planning generally involves transferring and/or re-titling some or all of your assets in order to better protect those assets from claims of creditors. Not surprisingly, however, there are statutory prohibitions against transferring your assets with the intent of avoiding your legal obligations. Whenever any assets are transferred or re-titled for protection purposes, it is critical… Continue Reading
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