The First Question Out of Your Mouth Once the Dreaded Lawsuit is Served.
By Rob Lambert - 
Email Editor
Date : November 13, 2008
Dear Valued Reader,
You just answered your door and some ill-groomed teenager hands you some papers. You look and see that you are served with a suit.
This is often a terrible time, especially if you do not have a solid Asset Protection Plan in place. Your heart starts to beat and your mind races. Many issues come to your head and you flip through the pleadings, often to find that the notorious scum (your word for the plaintiff) is asking for some completely unreasonable amount. Your knees feel like buckling and you face that fear of the unknown, often totally unprepared.
Well, when this happens there are a few fundamental steps you should take. First, sit down and collect your thoughts.
You remember my advice about ignoring lawsuits. You know this is a very bad idea so you call your lawyer.
The first words out of your mouth, once you have exchanged pleasantries and explained who the players will be: “Is there any risk of pre judgment attachment?” Normally, the answer is NO. |
Subject to an ever-growing list of exceptions, the general rule is that nobody can take your assets away without first winning a lawsuit and obtaining a judgment. Being sued does not normally expose your assets to pre-judgment attachments. Normally, once a suit is filed you have years to prepare for a potential defeat.
During this time there are often many things that can be done to reduce the target and the motivation of the plaintiff to proceed, without triggering a fraudulent conveyance issue.
So, remember this mantra, when threatened with a suit, the first words out of your mouth are, "Is there any risk of pre-judgment attachment?" If your lawyer doesn’t respond with the normal NO, then I hope that you have an old & cold plan in place.
It is hard to negotiate when they already have your “stuff” tied up.
Have a healthy and protected week.
Rob Lambert
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ABOUT THIS EDITOR:
Rob Lambert, Founder and former law professor is considered to be foremost expert on tax compliant asset protection structures. A contributing editor to Lexus Nexus debtor creditors series of law books Rob's passion is implement client wealth plans that stand the test of time and hold up under duress.
11 NOVEMBER
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