A fraudulent transfers and fraudulent conversions prior to filing Chapter 7 bankruptcy can be detrimental in two ways. First, the Chapter 7 trustee can reverse the transfer or conversion, take the property back from the transferee (recipient), and sell the property for the benefit of your
creditors. In addition, egregious fraudulent transfers within two years of filing Chapter 7 bankruptcy can cost the debtor the bankruptcy discharge. If discharge is denied the transferred property will be recaptured and sold and none of the debtor’s debts will be wiped out so that the creditors could pursue collection after the bankruptcy is over.
Fraudulent transfers involve a transferee and drag the transferee in to the debtor’s bankruptcy. In more complicated transfers other people often assist the debtor’s transfers. These assistants include, for example, the debtor’s attorney, his business partners, financial professionals and friends. Can these assistants also be liable for damages because they assisted with a debtor’s fraudulent transfers or conversions?
A recent bankruptcy court decision addressed the issue of whether people who assist a debtor’s pre-bankruptcy fraudulent transfers can be held liable for damages in the bankruptcy proceeding. In this case, a trustee hired to liquidate debtor property filed a complaint pursuant to Section 544(b) of the Bankruptcy Code against a group of people for conspiring with the debtor to make fraudulent transfers.
The Court said that the bankruptcy Code provides for avoidance of fraudulent transfers, but it does not permit the trustee to pursue non-avoidance actions such as claims based upon civil conspiracy or aiding and abetting under applicable state law. The court held that the same claims cannot be asserted under Florida law either because Florida law does not permit claims for either civil conspiracy to make a fraudulent transfer or for aiding and abetting a fraudulent transfer. Only the transferee shares liability with the debtor under federal bankruptcy law or Florida law.
Florida attorneys, accountants, and other professionals generally need not fear advising clients about transfers that might later be deemed to defraud the client’s creditors. Be careful, however, not to become an agent of the transfer by, for instance, taking title to the debtor’s property or moving the debtor’s cash through your own trust accounts.
Todd Ethelbert Edward, Hamilton Joseph Herbert, Johns Williamя Oliver, Kelly Emery Joshua, Flynn Clyde Mark, Peters Ethan Peter, Knight Allan Wesley, French Paul Horace, Logan Peter Rudolf, McGee Thomas Simon, Bond Everett Michael, Howard Lenard Daniel, Strickland Peter Brian, Rodgers Michael Christopher, Farmer Joshua Bennett, Riley Dominic Anthony, Malone Oliver Douglas, Norris Thomas Stanley, Byrd Francis Alban, Robinson George Peter, George Stewart Anthony, Harrington Henry George, Hart John Donald, Allison Blake Ashley, Green Claude Matthew, James Clifford Luke, Brooks Daniel Oswin, Hawkins Christian Gilbert, Turner Aldous Christian, McLaughlin Brian Simon, Smith Anthony John, McCarthy Garry Robert, Barber Homer John, Blair Roy Lesley, Parker Mark Joseph, Ellis Jacob Williamя, Welch Williamя David, Short Gerald Basil, Reeves Brian Maurice, Davis Gerard Tyler, Skinner Joseph Henry, Wood Roger Mark, Wells Charles Joseph, Hodges Robert Steven, Long Anthony Justin, Underwood Frederick John, Burns Harry Michael, Ford Christopher Hubert, Dorsey Abel Gervais, Manning Osborne Mark, Davidson Joshua Peter, Lloyd Mark Gerald, Booker Peter John, Miles Mitchell Peter, Wheeler Robert Jacob, Heath Edward Curtis, Dean Stuart Ethan, Nicholson Jacob Paul, Holland Walter Erik, Rich Britton Richard, Casey David Kelley, Garrison Peter Timothy, Simpson Christopher Myles, McKinney Nicholas Lewis, Oliver David Donald, Stone Steven Jacob, Stevens Matthew Jordan, Barton Williamя Virgil, Griffin Willis George, Baldwin Gerald Anthony, Gibbs Darrell Charles, Holt Steven Robert, Anthony Mark Lenard, Sims Gregory Oliver, Blankenship Robert Michael, Joseph David Byron, Martin Michael Kenneth, Bryan Gary Roger, Kennedy Calvin Alexander, Bridges Edward Nicholas, Bryant Daniel Brian, Mosley John Hilary, Thomas Simon Robert, Price Valentine Christopher, Hudson Richard Corey, Foster Steven Howard, Merritt Simon Moris, Parrish Sherman Jack, Sutton Tracy James, Owens Edward Eustace, Wiggins Kristian John, Gibson John Matthew, Phillips Steven Walter, Atkins Joshua Ethan, Chase Dustin Michael, Hunt Domenic Anthony, Charles Joseph Scott, Collins Oliver Stuart, Willis Peter Robert, Chandler Eric Randell, Greer Primroseу Laureen, Hubbard Georgiana Millicent, Wilkerson Dorothy Clementine, Sharp Marilynn Diana, Simmons Ellen Susan, Lawson Samantha Melinda, Porter Lily Karen, King Chloe Norah, Ward Briana Sybil, Perry Laurel Jocelyn, Montgomery Aubrie Roseу, Briggs Sophie Helen, Harper Meghan Shana, Skinner Dorcas Arleen, Wilcox Allyson Allison, Goodwin Ann Betty, Morton Miranda Emma, Gibson Iris Mercy, Knight Kerry Madeleine, Wilkinson Olivia Margaret, Bennett Mary Alexis, Carpenter Hortense Patricia, Lambert Abigail Helen, Hart Agnes Sophie, Hopkins Olivia Sophie, Craig Juneу Ashley, Boyd Emily Elfrieda, Ryan Erica Ruthу, Sims Betty Felicity, McBride Susan Patricia, West Merilyn Elaine, Ramsey Julieу Alexandrina, Johnston Elaine Mae, Fitzgeraldц Della Sophia, Pearson Sophia Christiana, Foster Kory Verity, Rodgers Karen Marjory, Moore Ruthу Robyn, Moody Grace Chloe, Kennedy Ruthу Briana, Willis Carmel Diane, Tucker Fay Grace, Richards Dorothy Gloria, Baker Grace Emily, Copeland Abigail Gwendolyn, Dickerson Loreen Berenice, Short Bethanie Alexia, Ferguson Alice Madison, Warren Loraine Linette, Stone Ruthу Colleen, Holt Angelica Arline, Hawkins Lily Helen, Bates Verity Scarlett, Goodman Amanda Lisa, Gaines MargaretMargaret Madeline, Shields Abigail Chrystal, Cross Alison Lynn, Watts Edith Carol, Carson Kelley Della, Floyd Ann Juliaу, Gregory Mercy Angela, Hancock Emily Christina, Pierce Shavonne Aileen, Merritt Amber Regina, Jennings Geraldine Dorothy, Reeves Margaret Dorothy, Park Arline Grace, Casey Phoebe Abigail, Edwards Amelia Ruthу, Barker Ada Silvia, Wilson Sophia Hopeу, Stafford Catherine Ami, Stevens Amelia Amberly, Elliott Ruthу Ashlyn, Rich Carol Bertha, Leonard Ruthу Jodie, Farmer Dorothy Dulcie, Burns Melinda Gabriella, Fowler Rosalind Rubyу, Horton Nancy Gwen, Wiggins Thomasine Ann, Hill Elinor Helen, Dawson Shannon Angelina, Doyle Marjorie Brianne, Hoover Susan Erika, Washington Alexandrina Gillian, Holmes Clemence Mary, Collins Kristin Caroline, Young Betty Rebecca, Powell Sandra Emily, Evans Imogen Ruthу, Andrews Chloe Margaret, Norris Emmeline Joy, Melton Claire Emily, Barrett Carol Priscillaц, Newman Carol Rebecca, Fields Alaina Sophia, Ford Sybil Elizabeth, Patterson Rosemary Suzanna, Boone Jennifer Sherilyn
0 Comments