Fraudulent transfer of assets is live and well in Lorain County. This is an old story with a new wrinkle. A fraudulent transfer happens when you transfer money or property or money to another person for the purpose of keeping it from creditors.
If you do this, the law allows the creditor to reverse the transfer and to recover the asset. Fraudulent transfer historically involved hard assets or real estate. Functionally creditors rarely bothered to enforce their rights except in cases where the obligation was large, and the transfer was substantial.
Is there anyone not now in real debt trouble? Commonly, a person who is working and has one or more judgments. Filing bankruptcy costs money. There has to be a cheaper alternative. Some people think they have found it. Put it into someone else’s name. How simple!
Mom will opens an account in her name. Son or daughter then has the payroll department make the direct deposit of the paycheck into mom’s account. The son or daughter would then use the money with the only debit card. A twist on this is when mom has an adult child open an account so mom can hide her money. Plug in spouse, close friend or other relative. It’s the best of all worlds. You hide your money from the collectors, and you can use it to your heart’s content. You beat the system. You saved the money you might have spent on a Lorain County bankruptcy attorney. What could go wrong?
Not much for you, but you may have have opened the gates of hell for the person whose name the account is in. Do you really think your lawmakers and the bankers haven’t thought of this one? Think about the Fraudulent Conveyance and Fraudulent Transfer law. The creditor will find out. They don’t go after you. They go after the person you dragged into the case, mom, your spouse, a friend. To keep your money from your creditors you made your money problem a bigger problem for the person who agreed to help you out.
The creditor will not go after just money is left in the account. It will claim every cent that went from you, or your paycheck into the account for the duration of your scheme. Now not only is your money in play, but all their assets can be taken to the extent of your money that went into their name. Depending on how long it has been going on, their liability could amount to many thousands of dollars in the name of doing you a favor hiding your money.
A far better result is for the person instead to pay your Lorain County Bankruptcy attorney fee. That will stop the collection action against you, and protect them from unknowingly assuming personal liability for your debt by means of a fraudulent transfer. I will be a huge savings for them with little risk.