Extending credit to a family-owned business or a closely held company can be beneficial—until they stop holding up their end of the bargain. The line between the business and family is often blurred, and companies can use this to avoid payment. If you want your money...
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Fraudulent Transfers
3 actions that could constitute a fraudulent debtor transfer
Some people with legitimate financial obligations want to do whatever they can to avoid their financial responsibilities to others. Creditors may struggle to collect a debt from an individual who doesn't mind quitting their job, changing their phone number or moving...
When debtors cross the line with exemption claims
Imagine winning a judgment and finally seeing a path to recover what you are owed. Then, the debtor suddenly claims that a high-end truck and home office equipment are “essential personal property.” California law does shield certain assets from collection, such as...
When a business owner uses an LLC to avoid financial liability
Many small businesses fail within the first few years of operations. Entrepreneurs aspiring to start their own companies frequently try to protect themselves from financial exposure. They may do so by forming a limited liability company (LLC) instead of operating a...
Gifts may allow debtors to avoid their obligations
There are many ways for an individual debtor to avoid their financial responsibilities. Some people ignore phone calls and return mail to delay collection efforts. Others may take much more extreme steps in pursuit of limiting collection efforts. For example, someone...
Debtors sometimes hide assets under an alter ego
Creditors have to jump through many legal hoops to collect money from debtors. Even after winning a judgment, they still have to collect their debt, often taking further legal steps. Many debtors are well aware of the process and do their best to avoid paying. One...
Can someone give away assets instead of repaying their debt?
People who owe more money than they can reasonably repay sometimes go to great lengths to avoid taking responsibility for their own debts. Sometimes, they will go as far as to quit their job to avoid wage garnishments or get rid of their own property so that creditors...
What are your options when debtors commit a fraudulent transfer?
Few things are more frustrating than securing a judgment against a debtor only to discover that they have transferred assets beyond your reach. Fortunately, you do have legal recourse for recovering what you are owed. The Uniform Fraudulent Transfers Act (UFTA)...