A caller asked me if a debtor could protect assets by legally changing his name and then conveying assets to his new legal name. He reasoned that this would not be a fraudulent conveyance because he was transfer title to himself, just under a new name.
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.