Miami Bankruptcy Lawyer - Florida Exemptions and "Fraudulent Asset Conversions"

Bankruptcy Lawyer - Chapter 13 Bankruptcy Lawyer Jordan E. Bublick has an office in Miami and has over 25 years of experience in filing chapter 13 and chapter 7 bankruptcy cases. His office is located in Miami at 1221 Brickell Ave., 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com  

An "exemption" in Florida is a right or privilege provided by law to allow a person to retain certain property free from judicial seizure by his creditors. The purpose of exemption laws is to prevent a person from falling into destitution and to allow a person to maintain a means of earning a livelihood. Exemption law though are intended for the "honest debtor" so the law does not apply them to make them instruments of fraud on creditors.

Florida statutes section 222.29 provides that an exemption provided by chapter 222, which provides many of Florida's statutory exemptions, is not effective it is results from a fraudulent transfer or conveyance as provided in chapter 726 of Florida statutes.

Florida statutes section 222.30 provides for various avenues of relief for a creditor against a debtor who has made a "fraudulent asset conversion". A fraudulent asset conversion is generally any change or disposition of an asset so that proceeds of the asset become immune or exempt from claims of a person's creditors and the proceeds of the assets remain the person's property. The conversion is a fraudulent asset conversion as to a creditor whether the creditor's claim arose before or after the conversion if it was done with the intent to hinder, delay, or defraud the creditor.

In the event of a fraudulent asset conversion, a creditor may generally avoid the fraudulent asset conversion, obtain an attachment or other provisional remedy necessary to satisfy its claim, obtain an injunction against further conversion, or execute on the asset converted or its proceeds. against further conversion by the debtor of the asset or of other property. A cause of action for a fraudulent asset conversion must be brought within 4 years after the fraudulent asset conversion was made.

If an asset is converted into an exempt asset and the converted asset is subsequently transferred to another party, the provisions of chapter 726 apply to the transfer to the other party.Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.