Basic Level Protection
Even if you: don’t own a business, are not a professional or a real estate investor, or feel that you do not have high net worth, you could still be a very lucrative target for a Predator Attorney.
Our Country is filled with hard working people who have been careful with their money and investments. They have planned for the future and are mostly unaware of the big target they are placing on their back.
IMAGINE a hard working couple with children. Over the years, they purchased a home and have significant equity in the house, even after values have declined. They also have a bank account with six months of reserves, just in case. They have another account set up where they are setting aside money they plan to use when their high school kids get to college. Both are good students and are looking forward to going to a good college. Mom and dad don’t live an extravagant lifestyle.
One day on the way home from school, their teenage daughter pulls out in front of a car. There is a collision. Their daughter has just a couple bruises. The passenger in the other car did not appear to be seriously injured (and was not wearing a seat belt in violation of the law). They had insurance to cover their liability and assumed it would all be handled by the insurance company and everything would be okay.
Enter Predator Attorney, who solicited the otherwise barely shaken up driver, and agreed to look into things at no cost to him. Predator Attorney hired an investigator (also known as an “Information Broker” in this age of digital information) who found out that the couple had substantial equity in the house and found all the account numbers and balances in their bank accounts. See $$$, he convinced his client to sue.
A lawsuit was filed claiming whiplash, pain and suffering from a back injury, emotional damage, loss of income, loss of consortium and post-traumatic stress. A $2 million judgment was entered against the daughter and her parents, the owner of the car. They thought that they had enough insurance. They were wrong.
After the insurance company paid its portion, a $1 million judgment still remained. Their bank accounts were frozen. They had not placed the college monies in a 529 account so it was not protected. It went to the plaintiff. So did their reserve account that took them so long to build. Next, a lien was placed against their house. Even though the house was titled as “tenants by the entirety”, meaning a judgment creditor could not foreclose a lien against only one of the owners (however, all the equity would eventually go to the creditor when they die or sell their house), it would not help in this situation. There was a forced sale of the house to satisfy the judgment. If any of the judgment remained unsatisfied, a wage garnishment could have been the next move by the Predator Attorney.
The kids had to take loans to go to college, and graduated with substantial debt. Not exactly the plan they had in place.
Things can change in an instant.
Why spend years working to provide security for you and your family, only to let creditors or predators take it all from you in a matter of weeks?
This result could have been avoided with some very basic Asset Protection. The car could have been titled differently. A protective lien could have saved most or all of the equity in their house. A creditor protected 529 account could have saved the college funds. A Family LLC could have saved their cash reserves.
If you think this could not happen to you, read about some Abusive Lawsuits to see several others who thought the same thing.
If you want to avoid any chance of this happening to your family, contact us for a free 30-minute confidential consultation by clicking here.