Third Circuit Pronounces a Damages Formula for Fraudulent Entireties Transfers
Bankruptcy Judge Thomas P. Agresti of Erie, Pa., was given the supreme compliment by the Third Circuit: The appeals court saluted his “prescient thinking” in devising a formula for calculating damages in a complex fraudulent transfer suit.
A man had been a partner in a law firm that went out of business. He was saddled with millions of dollars of liability for his guarantee of his “old” firm’s lease. While working at a “new” firm, he was hit with a multimillion-dollar judgment in favor of the landlord.
To avoid having income from his “new” firm garnished, he directed the firm to deposit his income directly into an entireties account in his name and his wife’s. Because the wife was not liable on the judgment, the landlord could not attach the joint bank account.
The man was forced into bankruptcy by the judgment. The trustee sued the debtor and his wife to recover fraudulent transfers under the Pennsylvania Uniform Fraudulent Transfer Act.
Eventually, the bankruptcy judge entered judgment against the debtor and his wife, calculating damages of about $275,000 under a formula suggested by the Third Circuit. The district court affirmed. Both the couple and the trustee appealed.
In an opinion on February 20, Circuit Judge Thomas L. Ambro upheld the judgment. In the process, he lauded Judge Agresti for recommending a formula for calculating damages resulting from fraudulent transfers into entireties accounts.
Related Stories
April 9, 2024
Title: The Alarming Rise of Identity Theft: A 2024 Perspective In recent years, the threat…
July 27, 2022
IRS Fresh Start Initiative Program, resolving IRS tax debts. Do You Need a Fresh Start…
June 9, 2022
IRS First Time Penalty Abatement – FTA The first-time penalty abatement (FTA) waiver is an…
March 26, 2022
If you filed a chapter 7 bankruptcy, look into filling IRS form 982 When you…
Posted in: Debt & Bankruptcy
March 26, 2022
DID SOMEONE FILE FOR UNEMPLOYMENT BENEFITS UNDER YOUR NAME? If you discover that someone has…
February 3, 2022
RICO suit, McKinsey In a decision last week, the Court of Appeals for the Second…
December 17, 2021
BEWARE OF USING MONEY FROM YOUR IRA OR 401(K) TO PAY DEBTS This can be…
Posted in: Debt & Bankruptcy
December 17, 2021
How to Spot Student Loan Scams. Things you can do to protect yourself. “Enroll now…
Posted in: Debt & Bankruptcy
April 9, 2024
Title: The Alarming Rise of Identity Theft: A 2024 Perspective In recent years, the threat…
July 27, 2022
IRS Fresh Start Initiative Program, resolving IRS tax debts. Do You Need a Fresh Start…
June 9, 2022
IRS First Time Penalty Abatement – FTA The first-time penalty abatement (FTA) waiver is an…
March 26, 2022
If you filed a chapter 7 bankruptcy, look into filling IRS form 982 When you…
Posted in: Debt & Bankruptcy
March 26, 2022
DID SOMEONE FILE FOR UNEMPLOYMENT BENEFITS UNDER YOUR NAME? If you discover that someone has…
February 3, 2022
RICO suit, McKinsey In a decision last week, the Court of Appeals for the Second…
December 17, 2021
BEWARE OF USING MONEY FROM YOUR IRA OR 401(K) TO PAY DEBTS This can be…
Posted in: Debt & Bankruptcy
December 17, 2021
How to Spot Student Loan Scams. Things you can do to protect yourself. “Enroll now…
Posted in: Debt & Bankruptcy