Many clients asked me how they can deal with consumer creditors such as credit card companies when they are delinquent in payments. I had a new client this week who seemed to be very successful in getting creditors to stop calling and in negotiating favorable settlements for delinquent credit card debts.
California is serious about collecting judgments. A gentleman called me from California last week to inquire about moving to Florida and transferring his bank accounts and his wife’s separate bank accounts to Florida bank accounts owned by he and his wife jointly.
Readers of this Blog know how to title their bank accounts so they are protected from judgment creditors. Suppose a married person owns his accounts as tenants by entireties or in the name of a separate legal entity, and the creditor nevertheless issues a writ of garnishment of the bank free temporarily freezing the money in these exempt accounts. What …
I have been asked many times whether a creditor can demand production of and inspect a debtor’s personal financial information after a lawsuit is commenced but before the creditor gets a money judgment against the debtor
I recently was asked during a consultation whether FEMA grants made to hurricane victims are exempt from creditor garnishment. I doubt there is any court decision on this issue inasmuch as this year’s weather is so unique and FEMA grants are made to areas designated as major disaster areas.
One of the biggest asset protection mistakes is underestimating the skill, intelligence, and resolve of creditors and their attorneys. My representation of a current Florida client provides a good example of creditor creativity.
One problem of having a judgment entered against you is that the creditor’s attorneys can attack any lawsuit you have, or any claim which you may have in the future, against any third party.
There are some creditors against whom asset protection is extremely difficult. These creditors include government agencies such as the IRS, SEC, and FTC, and your spouse.