If debt collector/lawfirm gets a judgment how to protect assets?

[DntMessWTX]

I am in the process of a lawsuit right now, but want to cover my bases. In texas, my question is if the plaintiff gets a judgment for X dollars. I understand they can lien my wages. I understand they can lien my home. Same for my bank account.

What's the process though? What do they have to do?

Part 2 of question is say that I have a business with a different EIN/SSN that is NOT being sued. But, I am a signer on the checking account, can they lien this account as well? To make an exaggerated example, if someone sues the CEO of a company personally, and he has a bank account under his name and social at say chase. Can the default judgment holder access his LLCs bank account just because he is a signer at B of A?

Thanks in Advance.

[Templar]

Exemptions!

Discover what the Exemptions are in your state. In NY you would need to make application to the Court for Exemptions.

[Randall948]

I understand they can lien my wages. No. THey cant in Texas if you are referring to a wage garnishment. Illegal in texas

I understand they can lien my home- From what I understand texas has a fantastic homestead exemption making most homes immune to creditors.

I am not in texas but in doing my research for my state I came across this many many times that Texas is a very very debtor friendly state.

As Temp said research your exemptions.

Also take some steps to protect your wages AFTER they enter a bank acct where they are vulnerable to a bank levy. Look into a prepaid visa/mastercard you can direct deposit into or as an alternative look into seeing if you can get paper checks vs direct deposit and live as much as you can off cash which is MUCH more difficult for them to keep track of or levy.

read Flyings making yourself judgment proof thread as well.

[DntMessWTX]

Thanks -- good information. The bank account thing is the real only worry, but as you said just writing checks from a pre-paid account etc. use cash as much as possible, which I already do - I don't use credit cards anymore -- obviously

Will check out "making yourself judgment proof " --

Thanks.

[DntMessWTX]

@Randell, I just tried searching for flyings? posts, can you provide a link please --

Thanks.

[nobk4me]

@Randell, I just tried searching for flyings? posts, can you provide a link please --

Thanks.

I think the posts referred to are over at debtorboards.

[DntMessWTX]

Ahhh-- thanks, I will try there.

[Randall948]

Oops yes. My bad. I peruse both boards a lot and the graphics are pretty similar and I forgot which board I was on lol. Please excuse me.

"but as you said just writing checks from a pre-paid account etc" ....I never said this. Unless you've found a prepaid card that lets you have a checkbook (and if you have please tell me because I cant find one) you pretty much have to just use the prepaid for purchases or as a temporary stop till you pull your cash out. Then use money orders and/or cashiers checks for when someone wont take a card.

I personally just have check DD into the card and every pay day I pull all but a VERY small amount out and live off cash. I am (hopefully) years away from getting sued as I only just defaulted a month or so ago but I wanted to establish a practice of doing this now so much later they cant easily claim I'm doing it just to mess with creditors.

[Guest usctrojanalum]

And don't forget down the road you can always try and pay off the judgment in exchange for having the judgment vacated, this is the absolute best option after judgment has been rendered but can't afford to pay it immediately. It literally makes your credit score shoot up like 40-50 points over night.

[DntMessWTX]

Spoke to a lawyer last night that used to work for the other side and he said that one of the best ways to protect your bank account is to form an LLC with its own tax id. You can put money in the account, use it as you would, etc. And if you are running a biz then all the better. The only thing the other side could do with a LOT of work is try to file that the business is a "fiction" and not real, but this is very very hard to prove and never done from what I understand.

So this might be the best option, a $200-300 LLC to create an entity you can use for a "bank" with credit card, ATM, checking.

[BTO429]

LLC= limited liability corp.

means the business has limited liabilities. as in person and LLC business can not be considered as the same.

AS in your personally sued but the business can not be brought into the suit and visa versa.

I own an LLC snd have had several ca's sue me and try to bring my business into the picture but the judge always says NO.

[DntMessWTX]

Thanks -- I know this, but I have learned what you know and what attorneys can prove are two different things However, your experience seems to point that judges won't go for it, plus I just spoke to an attorney and he agreed that business assets, accounts, etc. are not touchable -- he sited some specific laws that all seem reasonable.