Florida is considered to be a state favoring the rights of debtors over creditors, and this is true in many instances. Despite this, our state has two separate and distinct statutes to assist creditors when a debtor has committed fraud.  Oftentimes a judgment debtor may appear to be insolvent and uncollectible based upon their testimony and documentation produced. In reality, they may have transferred their assets to third parties or otherwise hidden assets that can be recovered.

Florida Statute 59.26, The Florida Proceedings Supplementary statute, allows a judgment creditor to implead (add as a defendant) any personal or entity that was the recipient of a conveyance made to defraud creditors or delay collection of a judgment. The court, assuming it finds that assets were improperly transferred, may order the assets returned to the debtor’s estate for sheriff’s levy, garnishment or other execution or may hold the implead party liable for the debt up to the amount of the improper conveyance. The statute is vague as to how it is to be enforced, leaving the courts broad discretion to fashion a remedy that best does justice to the creditor, while ensuring that the implead defendant is accorded its due process as required by law.

The second remedy designed to assist creditors in recovering assets fraudulently transferred is Florida Statute 726, entitled the Florida Uniform Fraudulent Transfer Act. This statute allows a creditor to void fraudulent transfers both before and after judgment against a debtor. It allows, among other remedies, for the appointment of a receiver or for injunctive relief to halt or reverse  a fraudulent conveyance.

Both statutes can be employed together or separately., depending upon the facts of each case. Each remedy has a  different Statute of Limitations and has other subtle differences as well.   At Marcadis Singer, PA, we have almost 35 years of experience in discovering  fraud and recovering  assets using these remedies. For more information please contact Gil Singer at gsinger@marcadislaw.com

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

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