Enron Executives May Lose Lawsuits, but Texas Law Helps Protect Assets
|
|
Targeted in dozens of lawsuits, former Enron Corp. executives face possible multimillion-dollar judgments that could far exceed their net worth. But hold the tears. Even if they lose big on every front, the execs get to keep their mansions, luxury cars, retirement income, any salary they earn and lots of other stuff. Dating to its 1876 Constitution, Texas has provided unique protection for debtors, especially rich ones. The law has been left virtually untouched, which explains why the list of valuables debtors can keep includes a couple of donkeys and two firearms. The idea is to allow those who made financial mistakes to have something left to rebuild their lives. The reality is the wealthy can make themselves nearly judgment-proof. “Is it possible that someone with a high net worth has nothing which you could collect with a judgment? You’re damn right,” said Robin Ziek, a lawyer who has practiced commercial litigation and collections law in Houston for 15 years. “You’d be shocked. There are 101 ways to estate-plan so that a judgment against you Source : accessmylibrary.com |