Archive: March 2009

Judgment proofing with lawsuit proofing

Some people confuse judgment proofing with lawsuit proofing. No one is totally lawsuit-proof. You are bound to bite the dust once you are sued. Another harsh reality must be confronted: you may judgment-proof your properties but there is no way you can lawyer-proof your assets. A sharp lawyer is like Paris, he can spot your Achilles’ heel from a distance. Like the scorpion who saved another animal only to kill him, some lawyers cannot help themselves. Their genes, environment, and training dictate the way they react to stimuli. Some are born and made to sting almost anyone within striking distance. In asset protection, lawyers may be your best friends or your worst enemies. The bigger your estate, the more immediate the need to get the best lawyers in the business to defend it against lawsuits. You have no other choice. You need good lawyers to craft a plan to reduce the potential scale of harm from other lawyers. The lawyers of your choice may help you “build bridges over the fault line” and keep you safe from serious injury. A lawsuit can hit you where it hurts the most — the pocket. Once hit by something you have not anticipated or prepared to settle amicably, the specter of an adverse judgment may inevitably cause the total dissipation of your savings. Things get worse once the plaintiff is a big corporation or an affluent person with massive financial resources and logistical support to bankroll the lawsuit. Once sued, you must respond to the complaint because failure to answer the allegations will result in default or instant loss in court.

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