How can notes receivable or other monies due to me from third parties be shielded if I am sued?
Posted on Jun 5, 2017 3:25am PDT
One alternative is to sell your receivables to a factor that will purchase
the receivables at a discounted price. You can also sell mortgages or
other notes due to you, as well as judgments or other claims against third
parties. Or you might accelerate payment of the receivable by offering
an attractive discount. You can certainly more easily protect cash than
you can money due you on a note. Generally, we title notes, mortgages,
structured settlements and other significant future monies due to a client
to a limited partnership. We may also pledge the note as collateral security
to a more friendly creditor to equity-strip it.