– Creditors can conduct post-judgment discovery on a debtor’s assets held jointly with a spouse, according to Florida’s Second District Court of Appeal’s opinion in Regions Bank v. MDG Frank Helmerich, LLC, et al.
– This allows creditors to have a greater reach in locating nonexempt assets to satisfy judgment debts.
– The case involved Regions Bank obtaining a deficiency judgment against a borrower and guarantors of a loan, and then proceeding with post-judgment discovery against the debtors, including a request for joint tax returns filed by the debtors and their wives. 1. The lower court ruled that the bank was not entitled to third party financial information on tax returns, allowing the debtors to redact information involving the spouse and jointly held assets.
2. The Second District Court of Appeal stated that post-judgment discovery aims to uncover information that will help the judgment creditor collect the debt, including assets that the debtor might have recently transferred.
3. The Second District disagreed with the lower court, expressing that creditors have the right to discover any assets the debtor might have that could be subject to levy or execution to satisfy the judgment, including jointly held assets.
4. The Second District reversed the lower court, holding that broad discovery of a debtor’s assets is permitted post-judgment, and that the debtor’s assets, whether held individually or jointly, are relevant to collecting the debt owed.
https://www.jimersonfirm.com/blog/2013/08/floridas-second-district-judgment-creditors-can-issue-post-judgment-discovery-concerning-the-debtors-assets-held-jointly-with-a-spouse/
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