When Assets are Fraudulently Hidden from a Creditor in Florida

Hidden Assets?

When you are owed money, and the debtor is hiding assets from you fraudulently, there are a few options available to you under Florida Debt Collections Law.

As a resident of Florida, it is imperative to understand that although the state favors the rights of debtors, creditors also have rights that should be taken into consideration.

Although debtors may receive the most favored treatment, the state of Florida does have two different statutes that assist creditors in the event of being a victim of fraud committed by a debtor.  This situation could occur if a debtor discloses testimony and particular documents stating that they are insolvent or uncollectible but in reality, their money is stored elsewhere.  Debtors will attempt to transfer all of their assets to third parties or hide them from creditors who are looking to acquire the money that is owed to them.

According to The Florida Proceedings Supplementary Statute (Florida Statute 59.26), creditors are able to add any person or entity as a defendant who have received any conveyance related to defrauding creditors or delaying the collection of a payment.  In the event that the court finds that said assets were transferred improperly, they have the ability to order the assets to be returned to the debtor’s estate for a levy with the Sheriff.  With that being said, the court can also hold the debtor responsible for any funds that have been improperly transferred to the correct party.  This can be quite beneficial for creditors as the statute itself is quite vague and provides courts with the opportunity to determine how it benefits the creditor more than the debtor, meanwhile ensuring that the debtor is awarded due process.

The second statute is the Florida Uniform Fraudulent Transfer Act (Florida Statute 726), which helps creditors to recover any assets that have been fraudulently transferred to a third party by a debtor.  This particular statute provides creditors with the opportunity to void any transfers pertaining to the debtor that appear to be fraudulent.  It also provides creditors with the opportunity to halt or reverse a fraudulent transfer.

Whether the statutes are used separately or together, there are many remedies available to creditors who are working with fraudulent debtors.  With over 35 years of experience, Collectivity LLC has worked with a variety of clients to ensure that they receive the money that they are owed easily and efficiently.

Until Next Time...

Collectivity LLC

Tampa Debt Collection Agency

8875 Hidden River Parkway, Suite 300,Tampa, Florida, 33637 Telephone:813.792.8030 Fax: 813.792.8609 E-mail: mlevinson@collectivityllc.com

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