It is rarely too late to protect assets from creditors, however you’ll find it more difficult to do so. No law obligates a lawsuit defendant to hold his assets for the benefit of his creditors, despite common belief to the contrary. In fact, Supreme Court Justice Antonin Scalia, in one celebrated case, announced, "A creditor has no cognizable interest in the assets of a debtor prior to obtaining a judgment. Anyone can transfer their assets all day long until the sheriff shows up with a Writ of Execution pursuant to a court order."
A defendant to a lawsuit has the absolute right to attempt to shield his or her assets. Contrary to popular misconception, a fraudulent transfer isn’t necessarily a crime. In most states it’s a civil remedy. By diving irreversible transfers from transfers that can later be reversed by the courts. With a fraudulent transfer, the transferor and transferee are not committing a crime. And frequently, a defendant’s attorney can successfully argue that the transfer wasn’t fraudulent.
Many clients in litigation are advised by their attorney that it is too late to protect once they are threatened. Even the direst of situations has its solutions. To further quote the Supreme Court, “A debtor [who is sued] need not to be a deer frozen in the headlights of an onrushing auto. The debtor still has it within his rights the opportunity to attempt to put his wealth beyond harm’s way.”
The safest path, of course, is to protect yourself before you encounter any problems. Many more planning options are available, and your assets become less at risk.
The Presser Law Firm, P.A. can integrate an Asset Protection Plan with your existing Entities and Estate Plan or work with you to create a new one.
Contact us today for a complimentary preliminary consultation regarding your Asset Protection options.
The Presser Law Firm P.A.
(561) 953 - 1050 or e-mail firstname.lastname@example.org