Legal Question in Civil Litigation in California

Re: Asset Protection from Frivilous Law suit

Everyone's remedies or ability to protect assets depend upon a nubmer of things, including what the assets are. If the trust you mention is a living trust, no, it does not protect you from creditors. Best to see an attorney--it doesn't matter if the lawsuit is frivolous or not.

Re: Asset Protection from Frivilous Law suit

There are steps you can take beefore you are sued, and there are other steps you can take after you are sued. As you might expect, some assets are easier to protect than others. What steps you should take depends on what type of assets (real estate, cash, jewelry, securities)you want to protect.

While we commonly speak of protecting our assets from a lawsuit, it's really a judgment you need protection from. Until your opponent has a judgment, he has about one chance in 1,000 of getting to your assets (and if the lawsuit is frivilous, about one chance in a million).

On the other hand, if your opponent has a judgment against you, he can go ahead and execute on your non-exempt assets, and the marshal won't care that the lawsuit was frivilous.

The first line of defense is to prevent the lawsuit from being filed. A good attorney can often get this done without paying money or making any other concession. If the lawsuit would be frivilous, then you probably don't owe your opponent anything.

Once the lawsuit is filed, the next line of defense is not to lose it. If it is truly frivilous, a good attorney should be able to win it. Depending on the determination and the resources on the other side, this may be easy and cheap, or it may be time-consuming and expensive; but you shouldn't lose.

If it turns out the lawsuit isn't totally frivilous, a good attorney will keep you abreast of your chances of winning or losing, and will let you know when and how to best use your resources to defend yourself, and will let you know if it becomes time to cut your losses.

Re: Asset Protection from Frivilous Law suit

I have to agree with both of the opinions you have received so far. Keep in mind that nobody can take anything unless they prove their case and win a judgment.

In other words, nobody can take your assets away without first winning a lawsuit and obtaining a judgment. Except in the rarest of situations (or in the case of the IRS or in certain divorce situations), pre-judgment attachment is not available in the USA. You always have several years warning.

Asset protection strategies can be best implemented when the financial seas are calm. Once attacks have mounted, it is sometimes too late to do any serious protecting because of the fraudulent conveyancing laws. You work hard to make your money and we believe that you should take ten percent of this effort and direct it toward protecting your nest egg.

What judgment creditors don't know about can't be taken. In other words, stealth works. Never volunteer anything.

Judgment creditors can only take what you own. If it is not yours, they can't take it.

Never trust anybody (especially a foreign trust company) with your money. All asset protection plans should be structured so that you never are vulnerable to any other person taking or dealing with your money without your consent.

Divide and conquer. Never mix liability generating assets in the same entity (for example, you would never have two apartment houses owned by the same limited partnership).

The United States is the only country in the world which permits contingent fee litigation. In all other countries it is unethical for an attorney to take a case on a contingent fee basis. In addition, in many countries the plaintiff must post cash with the court to handle the defendant's fees and costs if the plaintiff is unsuccessful.

You might want to talk to an attorney regarding the use of retirement plans, corporations, trusts, etc., which are more sophisticated. If you have specific questions, please feel free to email or call my office at 1-877-568-2977 (toll free).

Re: Asset Protection from Frivilous Law suit

You need a person who specializes in asset protection for one. The ability to protect your assets will depend on timing, type, and how much. My office specializes in sophisticated asset protection and international/domestic tax transactions. Please contact me by E-mail or examine my website at www.protectyourwealth.org

Re: Asset Protection from Frivilous Law suit

a trust will not protect assets. a good defense attorney will.