Protect Assets

The Need for Asset Protection

With the global meltdown of the economy, the number of lawsuits has increased dramatically.  Losses cause everyone to look for someone to blame, and for assets to attach.

Protected, assets held in the USA are arguably the most impenetrable in the world.

Asset protection vs. court costsUnprotected, assets held in the USA are easily had by nearly anyone who sues you.  Vendetta lawsuits are commonly filed in the US to cause you to incur exorbitant and unavoidable legal fees, even if the plaintiff knows they have little chance at being awarded anything by the court.  They know that you would rather settle with a cash payment then continue to an expensive fight.

Freezing your assets is often as easy as making an accusation in civil court.  Judges are often elected in the US, and often see freezing assets by various methods as the “cautious” thing to do, even if the assets are released later (after you may have spent a fortune in legal fees).  You don’t have to have done anything wrong.  You don’t have to owe anyone anything.  All you need is for someone to make an accusation, and you are out of business.

Unless your assets are protected.

Many wealthy individuals the world over title their US-based assets in Nevada, or hold them in a Nevada Asset Protection Trust.  This is a simple and effective method, but it is only the beginning.  Using the full complement of laws of the US and abroad, employing debt structure, insurance and more, you can become not only judgement proof, but lawsuit proof.

Lawsuit Proof vs. Judgement Proof

Judgement proof is a term which commonly refers to those who have protected assets which are not subject to attachment by judgement against the individual or business.

Jen and Soo Chung

Sued for $67 million by a judge for lost pants, the Chungs won the suit. But after two years in court and more appeals pending, they had to sell the business to pay over $100,000 in legal fees.

Lawsuit proof is much more unusual, and refers to those who are so well protected from lawsuits that the threat of civil legal action poses nearly no threat.  Such individuals may find that they need offer no defense in civil lawsuits, and make this fact public.  Anyone suing such an individual or business may realize that they will incur all expenses and effort, and have nothing to show for it.  This is a higher echelon of asset protection, and is especially obtainable by those who live outside the US, although not exclusively so.

To be judgement proof is good.  To be lawsuit proof is better.

Asset Jiu-Jitsu

Asset protection?  Try Asset Jiu-Jitsu!Asset Jiu-Jitsu is a term coined to describe the process of preparing assets for attack in such a way as to use them against the plaintiff.  It might be a waste of time to sue someone who is judgement proof or lawsuit proof.  Suing someone practicing Asset Jiu-Jitsu can be downright dangerous.

Like attaching by judgement a defendent’s car which turns out to be full of dirty needles, or a piece of land used as a hazardous waste dump requiring millions in cleanup, the action of the aggressor can blow up in their face.

Picture suing someone to take their home, only to find out it is encumbered by a line of credit balance of a million dollars more than the home is worth, and the lender is coming after you, accusing you of assuming the deficiency by actively pursing unsolicited ownership of the property.

Asset TrappingMaybe a plaintiff thinks he is going to own a business he sues, and a settlement quickly surrenders it to him, only for him to find out there is a secured line of credit balance owed for the entire market value of the business-all due and payable upon transfer.  Maybe a few customer or employee lawsuits hit the owner then too.

What if you sued an individual who looked small, only to find them counter-suing you with a claim for huge damages.  What if that individual already had an unsatisfied judgement against them for millions, and the holder of that judgement was assigned any winnings the individual receives in the counter-claim against you.  You just went from small-fry opponent to a big bully, about to clobber you.

These are examples of Asset Jiu-Jitsu.  When you are properly prepared, suing you can become financial suicide.

Call us for a free confidential consultation:  702-948-4228


  1. […] Protect Assets […]

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