How can I protect my assets from a liability lawsuit judgment?
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How can I protect my assets from a liability lawsuit judgment?
Asked on October 1, 2014 under Criminal Law, New Mexico
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
There is no good way to protect your assets from a DUI/DWI judgment IF you were already involved in the DUI/DWI; that's because any of the steps which you'd typically take to protect assets, such as putting them into a trust, having them owned by a corporation or LLC, or transferring them to a relative, could--and likely would--be seen as a transaction done to defraud creditors (the judgment creditor; i.e. the person(s) suing you) and could be set aside on that basis. If you haven't had the DUI/DWI-related accident yet but are wondering about what structures you could generally put in place to protect assets from lawsuits, then the things mentioned a above (trusts; corporations or LLC; transfers to relatives) are all viable options and could be considered, though as all also have tax consequences and significant actual or potential negative legal consequences (e.g. loss of control of the asset), you are advised to consult with an attorney in detail before doing anything.
Note that bankruptcy does not protect you from DUI/DWI liability; you cannot discharge debts from DUI/DWI liability in bankruptcy.
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