Protecting Your Assets Against Lawsuits

There are often complaints regarding how quick some are to file lawsuits against others in today’s society. While there are abuses of the system and cases that possibly could have been resolved out of court, access to civil lawsuits is crucial to ensuring your rights are protected and responsible parties are held accountable when wrongdoing occurs. Unfortunately, it is possible for good people to find themselves on the wrong side of one of these lawsuits. Asset protection to protect yourself and your interests is important, regardless of the type of work you do or the amount of property and money you possess. The following describes some of the common situations in which you could find yourself facing a lawsuit, as well as steps to take now to protect yourself against these actions.

Common Types of Lawsuits

The New York State Court handles nearly four million cases each year, divided between both criminal and civil proceedings. Civil matters that end up being resolved in court actions include both personal and business disputes, such as the following:

• Personal disputes: Personal injury claims, car accident claims, debt and bankruptcy cases, property foreclosures and ownership disputes, contested wills, and family court issues, such as divorce and child custody or support.

• Business disputes: Commercial and employment contract disputes, unfair hiring or firing claims, malpractice cases, landlord tenant disputes, product manufacturer claims, and premises liability claims.

If you find yourself named in a lawsuit and the outcome is unfavorable, it could potentially result in freezing or loss of your assets, wage garnishment, and liens on property and future income you may receive.

Asset Protection Strategies To Protect Yourself Against Legal Actions

Not all legal actions have merit, and some are eventually tossed out of court due to a lack of evidence. Even so, people who are completely innocent of any negligence or deceit can still find themselves being sued for vast sums of money, and once a lawsuit is filed, it is too late to protect yourself and shield your assets. Money Crashers recommends taking the following steps now to protect yourself against potential legal actions:

• If you own a business, use legal entities such as LLCs or sole proprietorships;
• Make sure you have personal insurance policies for homeowners, property, and automobile insurance, as well as commercial liability and workers’ compensation insurance for your business.
• Use ERISA-qualified retirement plans, which provide unlimited federal asset protection and up to one million in bankruptcy protection.
• Consider titling options for your home or other property, such as tenants by the entirety, to give both you and your spouse an indivisible interest.
• Transfer ownership of certain assets into irrevocable trusts, which can still allow your family to draw income.

Contact Our Experienced Asset Protection Attorneys For Assistance

You have worked hard for what you have earned. Make sure your property and assets are covered against frivolous lawsuits and contact Cavallo & Cavallo today. As your neighborhood law firm, we provide the professional, experienced representation you can trust to protect your rights and interests, while offering the legal advice and guidance you need in whatever situations you face. With offices in the Bronx and Westchester, we are your neighborhood law firm, so call or contact us online today for a free and confidential consultation.

Resources:

nycourts.gov/Admin/NYCourts-IntroGuide.pdf

moneycrashers.com/asset-protection-strategies/