The trial court must infer the debtor’s intent from the facts of each situation.įor example, a court examining the debtor’s intent could consider whether a transfer was made to a debtor’s family member, whether a transfer was concealed, whether the debtor retained effective use and control over the property transferred, or whether the transfer rendered the debtor insolvent. Debtors will not typically admit that their transfers or conversions were intended to protect against creditor collection. Conveyances are fraudulent if the debtor made the conveyance with the intent to hinder or delay creditor collections. The debtor’s intent is an essential element of a fraudulent conveyance. The Florida fraudulent transfer statute defines a transfer as “every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset, and includes payment of money, release, lease, and creation of a lien or other encumbrance.”įraudulent Conveyance: Intent to Hinder or Delay Collection An example of fraudulent conversion is the debtor spending their non-exempt cash to purchase an exempt annuity. Moving money or other assets to a new location is not a transfer if the debtor has not changed ownership or title to the asset.Ī fraudulent conversion is a debtor’s conversion of non-exempt property to a different type of property, still owned by the debtor, that is exempt or immune from creditor attack. An example of a fraudulent transfer is transferring the legal title of property or registration of a financial account to the name of a debtor’s spouse or child. Florida Fraudulent Transfer Statute of LimitationsĪ fraudulent conveyance can be either a fraudulent transfer or a fraudulent conversion.Procedure Creditors Use to Challenge Fraudulent Conveyance.What Can a Creditor Do About a Fraudulent Conveyance?.How to Defend a Fraudulent Conveyance Claim.Fraudulent Conveyance: Intent to Hinder or Delay Collection.
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