Bankruptcy Attorneys

Q: I am 15000 dollars owed by a friend that I borrowed. He was allegedly to pay me two years ago and a note. I always thought of a judgement against him because he works, has a nice house and a car. He says he has no money and the future of the last round. You said in a final column, the judgments are not worth the paper they are written. Is it a waste of time, a judgement?

A: No, a judgement can be an effective way to collect a debt. It is a mandate of a court declares that one person to another through the money. Once you have a trial, you can try to collect the sum by way of garnish bank accounts and wages, seizing tax refunds, the real and the sale of personal property of the debtor and other means.

If a debtor has money, judges, the right to free payment of creditors, who have no money, it must satisfy the judgement. If the debtor is not in order, it may be thrown into prison.

Given that column than in the past, I think what I said is that “sometimes” a judgement is not a lot of value, because they are not collected. The key to the effectiveness of stopping, whether the debtor in cash or in kind, and if you find him and his property.

In determining whether a trial research, you should consider three factors: your chances of success, costs of proceedings, the debtor and the likelihood that you collect judgment.

If you have a strong case, you probably want a judgement - even if the debtor has no money. This can be explained by the fact that a trial, by law, is compatible with an interest rate of 9%, and for the last 20 years. There is always a chance that the debtor has received money or property to pay your judgement over this period.

But if your case is not shielded and that the debtor has little, if all assets They face a difficult decision. They can also lose, and even if you win, the order would be worthless and you have attorney’s fees to be paid.

What is your case, it appears that you may be able, in a judgement. They wrote a note, no, ie it is a good example. Indeed, the debtor has a job and property, you have a reasonable chance to come together, to what you had to be 20 years old and do. One thing is clear - if you have nothing to do, you will receive nothing.

The US Bankruptcy Court for the District of Delaware has granted, Kingston, Pa-Diamond movement of glass which can act in a “debtor-in-possession (DIP) agreement with Guggenheim Corporate Funding LLC during the Chapter 11 reorganization (click here to use the story.)

The court ordered Diamond to borrow up to $ 3.1 million during the revolving credit commitment “in accordance with the budget and are subject to the requirements under the DIP credit agreement.”

In a separate decision, the Court also Diamond’s motion to approve the company “, the review of certain prepetition debts to suppliers and service providers.” The payments are “[Diamond], in its sole discretion, and to a reasonable extent in the exercise of their activities, stop”.

“We are very satisfied with the decisions of the Court yesterday,” said President Bill Cogswell Diamond in a press release this afternoon. “With the approval of new financing and cash income the current activities, we have more than enough resources and liquidity as normal conditions of use, while Chapter 11 of our cases. Our employees, our suppliers, our customers and other stakeholders dealing with us should be no difference in our day-to-day business. “

TAIPEI, April 01, 2008 (Asia Pulse via COMTEX) - - The Bankers Association of the Republic of China (BAROC) Monday proposed that the implementation of the new provisions make it easier for the repayment of debt, the debtor, trying to negotiate rules 3 The Only You Need To The Trade Market with banks on the terms of their repayment would be better off with an agent.

The BAROC officials said some of the debt, including lawyers, the ads have exaggerated the complexity of the insolvency proceedings of consumers, which are designed to rely on April 11, with the aim of debtor protection, who are not able to pay their debts at the same time.

These ads debtor to deceive consumers could believe that only with the assistance of a lawyer is able to better treatment from the bank, far from the truth, the BAROC said.

“The consumer insolvency proceedings, the debts really simplifies the process of negotiation,” said Spike Wu, chairman of the Consumer Finance falls Debt Restructuring Program Committee.

Wu said that in the proceedings, the debtor, just fill out the form of a document, for example, revenue for a refund of relationships with banks. The regulation, Wu has made payment options flexible.

“After negotiations, the bank is the debtor a solution to consider, in which the amount of the monthly payroll and payment terms vary depending on the situation of the debtor to pay,” he said.

“BAROC also the government action against misleading advertising, agents,” said Wu

Wang Jing-rong, a judge of the Judicial Yuan, Wu echoed say that the best way to clarify the debt to negotiate with the largest creditor Thrash recoverable.

“Hiring a single agent to delay the process, and hence your wallet thinner,” Wang added.

He added that the Ministry of Justice is to determine whether the misleading advertising in violation of a law.

The Consumer insolvency proceedings last June, two separate procedures for the problems posed by the debtor pays its lending - the reorganization or liquidation of debts of debt.

Debt re-organization allows the debtor, the creditor to beat an investment bank, that the terms of payment terms, the conditions proposed repayment options of up to eight years.

Liquidation of the debt if the debtor does not need to strike a satisfactory control of the Bank and by the court before and disposal of the debtor’s assets to pay its debts.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) attempts to strengthen the rights of service providers through an insolvent debtor revision of the Bankruptcy Code. The period in which the seller could resume products sold to a purchaser who has been suspended payments to 45 days, and a new provision was added to allow providers to assert a right of the administrative proceeding on the property in the debtor 20 days prior to the declaration of bankruptcy. However, the promise of these new provisions is often illusory as the courts have begun the new law to interpret.

Where are the goods: A Primer on Reclamation

Under the Uniform Commercial Code, a seller has the right to return products sold on credit to a customer insolvent, referring to the written request of the purchaser within a period of 10 days from the receipt of the goods by the ‘Where buyer.1 ability to pay was not properly represented by the buyer within the period three months before the delivery of a maximum of ten days is not apply.2

Refurbishment rights culture within the laws have long recognized bankrupt. However, the recent amendments to the Bankruptcy Code purported surrender to grant broader rights than in the case of bankruptcy are available at the UCC.

First, the code has been modified in order to reach-back period of 10 days to 45 days. As a result, vendors have much more time to their products under the Bankruptcy Code for the rule of law. If the buyer an application for bankruptcy, the seller the right to claim relates to goods delivered up to 45 days in advance.

Secondly, the amendment also extends the grace period, the seller 20 days after a declaration of bankruptcy of a legal claim. The seller is also up to 20 days after the filing of the bankruptcy to send their legal rehabilitation, where 45 days after the deadline for the restoration bankruptcy. The impact of these changes is a seller as much as 65 days after delivery of the goods to a buyer (45 days, back to more than 20 days to provide legal rehabilitation), in order to recover.

Finally, the amendments provide a seller of Trustees demand equal to the value of goods by the debtor within 20 days before the [date of the declaration of bankruptcy], in which the goods were sold to debtors in the normal course of business these debtors. “3

All of these changes on the smooth paper, but the reality is that the right to rehabilitation, it is largely illusory. The Bankruptcy Code, while extolling a seller rights claim, he failed, “deliver the goods”.

Refurbishment culture has always been a hard nut to crack. Courts are often the norm, that the products are identifiable and in the possession of the debtor at the time of the claim. Thus goods resold by the buyer, in the finished product, or otherwise consumed in the operations of the buyer was unable reclaimed.4 Bankruptcy amendments do not alter it.

But the biggest obstacle to the complaint, a vendor of the existence of rights of a secured creditor with a prior perfected security interest in the buyer’s inventory. The bankruptcy amendments provide that claimants the right to rehabilitation is “subject to the prior consent of copyright holders of a security of the interest in such property or income.” That creates significant 5, perhaps insurmountable problems for the reconquest of sellers.

Cases BAPCPA interpretation has not been particularly useful for the recovery of creditors. In In re Advanced Marketing Services, Inc., 360 BR 421 (D. Del Bankr.. 2007), edited by Simon & Schuster (S & P), who earn over $ 5.1 million, with a value of the goods to inside the debtor 45 days delay re-cultivation to publishing timely again after the bankruptcy of the purchaser is not a request. The bankruptcy court refused S & S request for a TRO, which argue that S & P does not demonstrate that it probably will succeed on the merits of its claim, the claim priority lender high-level links to all major assets of the debtor, including the goods and inventory. The pre-petition lenders have agreed to the post-petition debtor in possession (DIP) financing, with the pre - and post-petition financing, conditionality held. The court of bankruptcy, “the leaders lender” pre - and post-petition Petition links on the debtors’ inventory reflect on the [S & S] restoration claim. ” 6 Once the senior lender links were satisfied with the sale of inventory, S & S rehabilitation claim will probably be useless.

In addition, re Dana Corporation, 367 B.R. 409 (Bankr. SDNY 2007), the debtor may debt rehabilitation of hundreds of suppliers and believes it “under” existing liens on the goods would be recovered. The Court ruled in favor of the debtor. Pre-petition safeguards, including reimbursement of the goods, it was decided, subject to the creditors’ pre-petition, the right of pledge. Judicial approved under the loan agreement, the debtor, the debtor, the right use, the lender “pre-petition guarantees, with a link replacement in all pre and post-petition guarantees and revenue. The pre-petition was refinanced debt and paid at maturity of the loan. The court ruled that the merchandise was recovered to the satisfaction of liquidation of the pre-petition debt have been pledged or as collateral for loans from the PID. In all cases, goods have been recovered are eliminated, so that the claim of rehabilitation worthless.

Section 503 (b) (9) Administrative Claims

Maybe because the recovery code for as little benefit from the addition of new BAPCPA section 503 (b) (9), has come as a big seller. Section 503 (b) (9), recognizes a seller expense7 administrative equal to the value of goods by the debtor within 20 days before the date of commencement of the case [Bankruptcy Code], in which the goods were sold , The debtor in the ordinary course of business of the debtor. “11 USC § 503 (b) (9).

Section 503 (b) (9), is applicable to all sellers, regardless of whether the seller has a claim. Indeed, section 503 (b) (9), he intended to “provid [e] for the relief agencies to suppliers of products that are not necessary warnings, rehabilitation provision of section 546 ( c). ” 8, section 503 (b) (9), is applicable even when the goods are no longer in the possession of the debtor or unidentifiable. The same is true if the request for surrender under section 546 (c) is committed to be worthless, because the burden of goods by a interest.9 Senior Security Section 503 (b) (9), applicable for both reorganization and liquidation cases.10

That seems impressive, but the application of section 503 (b) (9) is still something else. Although the right to an administrative requirement, pursuant to section 503 (b) (9), there are substantial costs to the exercise of this right. The Bankruptcy Code rules and do not specify how a section 503 (b) (9) the right to do so. This uncertainty would keep many vendors, lawyers, a request for payment of an administrative expense. If challenged, the discovery may be necessary to determine the value of goods by the debtor within 20 days from notification of the bankruptcy and a test that can be ordered to repair the damage to affirm the value of this vendor .

Although the evidence is successful, the sellers are entitled to an administration say the requirement for non-payment. Chapter 11 administrative property could be insolvent, in this case, Section 503 (b) (9), the claim may not be paid in full (or perhaps ever).

The debtor may also manipulate the date of payment of vendor claims. Under the Bankruptcy Code is not obligated to pay administrative claims up to the date of entry into force of the current Chapter 11 plan.11 Two decisions have asked the Section 503 (b) (9), accounts receivable management pay. Explain that section 503 (b) (9), is a “priority rule, no pay”, the two courts ruled that the applicants Administration was not entitled to immediate payment of their claims.12

Seller administrative requirements of the compensation may also, if a debtor has a pre-petition against the creditor’s request. Unlike other administrative priority claims, post-petition, they are pre-petition claims within 20 days before the registration deadline of bankruptcy. Therefore, they can compensate, if the debtor has pre-petition against vendor.13

Debtors also provided, the payment of claims Vendor for administrative contracts at the discretion of the debtor to pay such claims in favourable conditions for real estate. Debtor, then with the promise of prompt payment as leverage for the seller to reduce the amount owed to his administration or loans on favourable terms for the future.

What is a seller to do?

In short, changes in the bankruptcy are not reliable engaged in commerce with creditors a privileged status. However, there are actions that can be a vendor to improve its position in a bankruptcy proceeding.

1 The best advice is to avoid an applicant a total of rehabilitation. A seller, who suspects that his client was on the verge of insolvency or bankruptcy, should either refuse to renew a credit card or purchase money in the interest of safety of the products it provides.

2nd Section 503 (b) (9) Applicants may Volume meets for an ad hoc committee to “recall” the debtor and the secured lender, that trade is of vital importance to the debtor’s creditors, the success of the reorganization.

3rd With or by the committee itself, a vendor with a significant discount law should carefully examine and, if necessary strictly post-petition against the fact that the funding could refute the validity of his claim.

4th If it is a case of insolvency administration, section 503 (b) (9), the applicants have as a single lever for the payment of the filing of a motion to dismiss or convert the case to Chapter 7 Well Certainly, the dismissal or conversion is not subject to a payment, the vendor claims that it is because there are a few advantages, thanks to the liquidation. If yes, then the dismissal or conversion may result among some providers the ability to negotiate prompt payment of their claims.

Conclusion

Although promoted as a salesperson, which prohibits addition, the new provisions on bankruptcy, it became apparent that it is a paper tiger. Amend the courts unless their analysis or amend these provisions for other vendors, suppliers should not count on the Bankruptcy Code to the issuance of them fail buyer.

The recent decision of the Honorable Shira Scheindlin the United States District Court for the Southern District of New York in In re Enron Corp. (Enron Corp. v. Springfield Assoc.), 2007 WL 2446498 (SDNY Aug. 27, 2007), was to the one Welcomed the creation of several security in the trade in the bankruptcy claims that, if such a negotiation anonymous (for example, advertise electronically, without the seller or buyer), and secondly , criticized, creating some uncertainty, the seller, if the buyer is known. Much has been written about the outstanding issues comment to the left of the ruling, Judge Scheindlin, but there was little discussion about the practical effects.

There is a demand for bankruptcy proceedings in December 2001, Enron, in the short term, a loan agreement with a consortium of banks. With the declaration of bankruptcy, the banks of origin to transfer part of their rights in the credit agreement to an independent third party. Then Enron, the transfer of certain banks (1) asserts that banks are unfair behavior give rise to the submission of their just demands against Enron, and (2) the assertion of preferential rights against banks. Enron also cites the buyer of the bank’s subordinated debt and just want to hold these rights is based on the assignor and the unjust behavior, because banks have not yet returned avoidable transfers of certain debtors - despite the that the buyer claimed not to have participated Known in the assignor or the alleged infringement. These costumes considerable controversy and led to what many years (continued) litigation.

In practice, the reality of trade receivables is that as a consequence of a global environment increasingly computerized, insolvency transactions with claims are often anonymous and quickly electronically. Therefore, buyers are usually not (and certainly not) engage all major Due diligence in the context of the purchase of receivables. Indeed, as is often seen as diligence, as appropriate, at least part of risk analysis related to the acquisition of a receivable. Instead, buyers often focus on the analysis of potential recoveries under a reorganization plan in place and that the plan would probably be confirmed before shipping the buyer (including the time value money) on profits. (See 6 Collier Bankruptcy Practice Guide, 94.02 ¶ ¶ [2] 94.02 [3] (2007)).

This approach has been used for the purchase of receivables is questioned by the two rulings by the Honorable Arthur Gonzalez of the United States Bankruptcy Court for the Southern District of New York v. Enron Corp. Springfield Assocs. 2005 WL 3873893, No. 01-16034, 05-01025, op hatch. (SDNY Bankr. November 28, 2005), and v. Enron Corp. Avenue Special Situations Fund II LP, BR 340180 (Bankr. SDNY 2006). Although, as Judge Gonzalez recalls, in one of its rulings, the risk of bankruptcy, debts purchase “was, in the industry of outstanding debt at least a decade,” Judge Gonzalez decisions Posted at tingling spine numerous requests for traders.

In its decisions, Judge Gonzalez noted that the purchase of a law can be fair subordinates of inequality based on the behaviour of the seller and the claim may be subject to failure, if the seller does not have the return d a preventable. The Bankruptcy Court noted that the buyer should not have more rights than the transferor, and therefore, if a solicitation in the hands of the transferor, it is also ranking resignation in the hands of a buyer. In support of such conclusion, the Court found that “the righteous available to offer relief from the doctrine of submission remains fair to demand.”

Bankruptcy Court decisions were praised by some as necessary to protect the integrity of the market and exchange to prevent “washing debts” (ie the transfer of rights of a creditor d avoid the consequences of their bad faith), and critical Other than the decisions that “bombent chaos on the market for bad debts,” which, among other things, trade disheartening that the price of claims to reduce drastically, and the increased costs associated with the need for the implementation of due diligence with respect to the transferor That behaviour in relation to the debtor. Levitin, Adam J., Finding Nemo: the rediscovery of the virtues of Wake Negotiability of Enron, COLUM 2007. BUS. L. REV. 83 (2007).

On appeal from the District Court, Judge Scheindlin contrast, the decisions of the lower court and found that the principles of equity and submission, as requests that he personally and are not characteristics of the application and therefore demand in the hand is the assignee Not fair bid or non-recognition on the basis of the fault of the donor. However, the District Court distinguish between calls for a “sale” and claims of ‘transfer’, the fact that a trial in the transferee of a claim are subject to the requirement of equitable sharing of risks and goes the submission, while the buyer is not a right. The Court emphasized that the claims, where trade is anonymous, the bid would not be appropriate, given the fact that the buyer has “no possibility to check if the seller (or a buyer, the line) acted unfairly. ” In such a case, the Court, moreover, “[s] on the level of due diligence to [the buyer] Part demonstrate that the information and it is difficult to know what will be the market price, as ignoring the risks. “District Court case to the Court of Justice for a declaration of bankruptcy, if the claims have been challenged by a sale or divestiture. (The District Court rejected a request because of his vocation leave for the Second Circuit).

In part, the District Court in its decision seems to have recognized the current reality of the market trade of bankruptcy claims (ie that many of these requests will be negotiated anonymous so that there is no due diligence impractical, if not impossible). Indeed, says distributors with whom the author spoke emphasized that, with regard to requests anonymous, the decision of the District Court makes a lot of sense. But for some, the decision raises important questions and concerns. For example, from a practical point of view, the judges Scheindlin no explicit criteria for the lower courts, the distinction between the sale and transfer. Commentators and bankruptcies The judges also indicated that the decision would be difficult, due to a municipality, estimated that the sale is not a difference of a sale of trade receivables Arena (in fact, the words used are often interchangeable). Scheindlin Additionally, the judge pointed out that the analysis of the Court of Justice “was not in bad faith by the buyer.” However, it is difficult to know what this really means language and the charges, if ever, it requires the implementation of the buyer due diligence.

Yet the impact of the ruling, Judge Scheindlin is that the man trade in the bankruptcy of certain requirements of comfort when they are anonymous (for example, via electronic means), they are step in the submission of potential claims based on the misconduct of Transferor. Such comfort was virtually eliminated by the decision of the Bankruptcy Court doubtful debts traders breathed a collective sigh of relief after reading the decision of the District Court. Moreover, even if the identity of the seller and buyer are open, claims traders noted that as a practical mater, the distinction between selling and transferring an academic emphasized by Judge Scheindlin is worrying, but it can be managed in the rights of trade. This is because, as in most situations, the buyer Typically, an agreement to indemnify Excerpts from the seller regarding the transmission, protection of the buyer, which, among other things, all requirements of the bid, which may be later on demand. Accordingly, in order to ensure protection against the risk of a provision of justice following the submission of an application was not as a combination of the sale, upon completion of rights as other guilds on the anonymous basis, the buyers of receivables is not doubt that (if it is otherwise Is not inclined to do so), who received compensation under the existing agreement seller. As a result, according to Judge Scheindlin decision, if the transaction is later than by the court to an assignment rather a sale, the submission is based on the faulty behavior, the seller and the buyer undoubtedly research exercising their rights to compensation Under the agreement with the seller. Faced with this relocation probable risk of buyers and sellers, it will be interesting to see how (if any) of this new landscape is changing of the pricing policy of the bankruptcy take account of the requirements as a higher risk, is provided by the seller.

As a final point, it should be remembered that it remains uncertain if - if a creditor nor the benefits of trade process to avoid the consequences of justice or non-submission of an application for recognition - the effect on all other creditors of the estate can be done, minimizes. A free market for the assets, which means that the identity of the debtor, the creditor is often in motion. However, some have argued that the court sanction the process of “washing claims,” the risk of reducing, or at least delay distributions to creditors largest group. This could perhaps other consequences, including the complexity of the bankruptcy of the resolution of cases arising from the inability of the debtor to negotiate with creditors a solid body. On the other hand, trade receivables, often on the efficiency and liquidity of bankruptcy.

Don Coleman, chairman and CEO, GlobalHue; Tony Hopp, President and CEO of Campbell Ewald, Andy Young, Senior Director, advertising and the media, Kellogg Co.; Til Levesque, president and market manager, Clear Channel Radio-Detroit, Jeff Murri, Vice-President and General Manager, WJBK-TV Detroit 2, and Jessica Pellegrino, General Manager, WUDT, Univision Detroit; on the Ad Council’s Leadership Detroit.

Wayne County Airport Authority Police Chief Edward Glomb the Board of Directors, the airport Law Enforcement Agencies Network.

Marc Jerabek, Fabrizio & Brook PC, Troy, vice president of EU membership, the Oakland County Bar Association’s New Lawyers Committee.

Matthew Leitman, Principal, Miller Canfield, Troy, the president of the Harvard Law School Association of Michigan. Leitman received his degree in law at Harvard Law School.

Victor Naidu, president and CEO, Ramsoft Systems Inc, Southfield, chairman of the Board of Directors, The IndUS Entrepreneurs, Detroit chapter. In addition, tel Ganesan, CEO, Vision Systems, Bingham Farms, vice president and Bhagwan Dashairya (Bob), President and CEO, Dashairya & Associates, Westland, Executive Director.

Brian Trumbauer, partners, Bodman LLP, Detroit, a co-chair of the debtor-Creditor Detroit Metropolitan Section of the Bar Association.

(PRWEB) April 1, 2008 - Debt Management has a growing industry in the past ten years, the number of consumers with debt problems. This growth has recently exploded and still increase if the credit fully met in Crunch

“We are witnessing a circulation record requests regarding bankruptcy counseling and debt,” says an insider in the industry and added: “We are not in a position to the huge number of calls . Over the last 3 years we have seen an increase of 59% from year to year, the man who says insolvent. ”

Company debt management as a mediator between the debtor and creditors. Normally, the contacts with firms in these creditors to negotiate better manage the payment terms to pay the debt as soon as possible with the help of creditors. Debt management can offer aid and debt aims to combat. He is considered by many as an issue of debt and an alternative to bankruptcy.

Causes of indebtedness of consumers is a combination of bad credit and lifestyle decisions. Savings and investment on a low point, since consumers increasingly, as a result, consumers in a cycle of spending and borrowing.

Experts are betting on guilt, the banking sector and their reckless provision of credit lines are not able to manage them. This situation has now an end, given that consumers today, the reality of the year heimzahlend live on credit. We can all expect credit, including for those who want more solvent, increasingly difficult to obtain.

It is obvious that this message is not all bad, if you are in debt management in the industry. With the opening of new businesses on a daily basis, only to the growth of the industry in Britain seems to be debt management.

Given that Afghanistan for their efforts to eliminate poppy cultivation, many poor peasants, proceeds from the plants have their daughters to sell their debts to local merchants, the loans in exchange for opium . Many farmers have a large part of their lives in improving the opium rocky slopes of eastern Afghanistan and in the southern plains dusty as the only reliable cash crop.

(Photo: http://www.newscom.com/cgi-bin/prnh/20080330/NYSU002)

In the April edition of Newsweek 7 (log newsstands Monday, March 31), Afghanistan Sami Yousafzai, a correspondent for South Asia and the Bureau Chief Ron Moreau report that the practice began with one of the Husband of the traditional family-father of the bride pays tribal Pashtuns are in society. These days, just in the amount of $ 3000 or so in poor countries like Laghman and Nangarhar in 8000 dollars or more in Helmand, Afghanistan’s No. 1 opium growing province. For a peasant desperate, the price of the bride can cure - but at a terrible cost. Among the Pashtuns, the debt constitutes a marriage lasting stain on the honor of the bride and her family. It is a disgrace for the country. President Hamid Karzai said a short time ago the nation: “I appeal to the human [not] girls to give them money, they should not be up to them to old men, and have force them to see. ”

Nobody knows how many weddings are held debt, in Afghanistan, where 93 percent of the world’s heroin and other opiates come. But Afghans say, the number of loans married is increasing, that the efforts to eradicate poppy farmers urge more overdue. “This will be our darkest year since 2000,” Baz Mohammad, 65, a former farmer from opium Nangarhar. “More girls are sold for this year.” The old man lives with the fear of selling its own 13 - daughter years in the year 2000, after the Taliban leader Mullah Mohammad Omar banned poppy grows. “Lenders never show without mercy,” says the old man. Local Farmers say that the commitment made by a debtor to hand and foot, then locked in a small room with no windows Schwelbrand fire, the slow death by suffocation.

While law enforcement provide yet another record harvest of opium in Afghanistan in the spring of this year, most farmers are struggling to survive. It is estimated that about 500000 Afghan families, by increasing poppy, according to the UN Office on Drugs and Crime. During the past year, producers have been estimated at $ 1 billion for their crops - over $ 2000 per household. With at least six family members of the EU average, the combination of poppy cultivation per capita income is around 300 dollars. The real benefits go to the distributors, and their Taliban allies officials criminals who exploit them. The country is well-oiled machine drug generates more than $ 4 billion per year for the export of opium and heroin dealing - more than half of the GDP of $ 7.5 billion, after UNODC.

The efforts for the promotion of other cultures in these areas have failed. In wheat or corn $ 250 per hectare brings a better, while poppy growers can expect 10 times more. In addition, more reliable poppy either bold as wheat or corn, and more tolerant towards drought and heat and extreme cold. And in a country where virtually no state-supported credit for small farmers, gardeners of opium, you can advance on their crops. The borrower agrees that payment of cash so kilos of opium, at a price fixed by the lender - often 40 percent or more at current market value. Islam prohibits the fees charged on a loan, but money and distributors poppy country to evade the ban on packaging, transactions at the end of the harvest business - and never forget that the return on Investment is synonymous wear.

Mohammad Zahir Khan, a battery of tenants in arrears of Nangarhar, in his 40, borrowed $ 850 in the spring of last year, the harvest hand, many promises for 10 kilos of opium to the lender - over $ 1250 on the market local. The cash bought food and other needs of his family and allowed him to seed, fertilizer and tends to help his three hectares of sharecropping. In the spring, it brought together 45 kilos of raw opium insert, half of which went immediately to land. But before Khan allowed to repay the loan, his wife fell seriously ill with a kidney disease. They were in need of improved medical coverage as could offer Nangarhar, he rushed them on the Pakistani border in a private hospital in Peshawar. It cost nearly every cent knew that Khan and his debts would only grow opium. To this must be added the fact that the governor of the province, a former called warlords Gul Agha Sherzai, has chosen this moment to explain his own war against drugs, the detention of hundreds of local farmers, who Record opium planting. Nangarhar 45000 hectares of poppy were in a year, other experts say today that the province is quite clean.

At the end of last year has given reluctantly Khan, 16, her daughter, Gul Ghoti, within marriage to the lenders of 15 years, son. Besides Khan forgive the debt, creditors gave him a $ 1500 cash. Khan called an honorable man. “Until the end of my life, I feel because of the shame of what I have to my daughter,” says Khan. “I still can not on him in the eyes.” But, at least, she was old enough to get married, “he adds. He said a local farmer recently had promised the hand of his 2 month old daughter to liberate his family a debt of opium.

Angiza Afridi has a large part of last year survey of more than 100 families of opium in marriages of two of the 22 districts of Nangarhar. The teacher and journalist from the local television had first-hand knowledge of the tragedy. Five years ago, one of his young aunts, then 16, was forced to marry a man of 55 years, to pay an old debt of opium uncle, and three years ago, a cousin of 8 years was also in marriage to make a property on Drug loan. “This practice, the girls can marry at the coverage of debt is always a bad habit,” said Afridi.

In both districts, she studied nearly half of all new brides had received in marriage opium to pay down debt. The new, children are married off at age 5, until they are old enough for their greatest success, mostly as servants of their budgets and laws. “These poor girls have no future,” she says. The worst may be suicide. Afridi learned one aged 15, married opium poisoning, on her wedding day and the end of Last year, at age 11, with a lethal dose of opium at the same time. your new laws were refusing to abide by their parents did visit.

IT IS debt is likely to be a major problem in the coming years ..

Over the past few columns, I tried, ideas and solutions to the debt problems to prevent the most extreme finally able to bankruptcy.

I want to concentrate on the two possibilities, individuals can be formally bankrupt Scotland: Kidnapping and conclusion of a trust protected (PTD).

Aufgehetzt is sealed by the creditors, while PTDs are at the initiative of the debtor. Bankruptcy - sequestration or use of its Scots term - is not something that everybody should compel easily.

But for some, and the latest figures show that 13814 people involved in Scotland in the year 2007, it is the only possibility.

They have exhausted the possibilities for reappropriation and borrowing against equity and loans, it is the only plausible solution.

Latest figures show that in the fourth quarter of 2007, there was a decrease of 11.4 per cent in the number of PTDs and 1.2 percent increase in sequestrations compared to the third quarter 2007.

Sequestration can be awarded against the property of an individual, a partnership, a Limited Partnership, a body or a body not as a club.

The claims of creditors against the estate of the borrower.

The property includes vererblich and assets, money from the debtor, the right to money or property at some point in the future, and all the surplus revenues during the receivership. An agent appointed for the monitoring process

The debtor is required to cooperate with the agent and unloaded before bankruptcy
After three years, even if it is possible, by the court in certain circumstances.

A permanent record of the process is determined by the trustee and is responsible for the inspection of all interested parties. The consequence of the practice of escrow is limited, the signature of an individual acquisition of credit for at least three years from the time of the bankruptcy, but it may also have implications for the future of access to credit for some years.

Sequestration is also the ability of a person buying a car, if they are equipped with a loan to expand or modify their mortgage, expand or modify their circulation credit with a bank or an change in their bank account, and all that is needed to buy a credit check.

Consequently, sequestration should be the last resort.

Unfortunately, it is likely a decision to increase the number of partitions may be forced to work in the coming years.

Brazil President Luiz Inacio Lula da Silva said it was time to increase the debt in Latin America, to promote growth, now that Brazil, the largest country in the region, has become a net creditor on world markets.

Brazil, the longest in the world-Emerging Market debtor, it was a net creditor for the first time in January of the distribution of raw materials and foreign investment keeps causing international exceed international commitments of around 4 billion, the Central Bank of Brazil, Feb. 21.

“ For 500 years of history, we were owed,’’said Lula, the Argentine Congress during a visit to Buenos Aires yesterday after an official report by Brazil to reporters the presidential palace. “ We must now benefits from the situation, if not privileged in any case better than we do in all countries to start and we indebt.”

The debt should not be only an increase in overheads, “said Lula. It should be used to increase the force of the water dams, communication systems, railways and other infrastructure projects to help them develop in Latin America.

WASHINGTON - For the moment, there are people who are crawling, if their phones ring.

These people are sick feeling to know that the caller is probably one of the creditors to come together on a bill late. Much of the news in recent times, those behind him on mortgages. But the fact is that all debts are people. The Americans have $ 2.5 trillion in non-mortgage debt.

In the last column, I wrote about the rights granted to debtors under the Fair Practices Act of recovery, people in the collection of illegal tactics. Now I want to discuss what the debtors should be if such a request from a collection agency or law firm.

One thing you should not do is let the phone ring or go to voicemail. Even if you have no money to pay debts, and recovery agency or lawyer to know your situation, said Bob Markoff, the president of the National Association of Retail Collection Attorneys.

“We can talk to you and find a way for something, that your budget,” said Markoff. E consumer has the right to pay what they can afford. ”

When you respond, not to be put under pressure, a payout, you really can not. Single vote in a payment plan that you can really Stick. There’s no point in promising money that you have not yet debt collectors and counteract stress.

“Do not let yourself be intimidated by anyone to claim your money,” says Markoff. “Do what you can do, and if this is not acceptable, it is regrettable that credit institutions.”

Regardless Markoff warns that you should not try to duck the debt claim can not afford to pay, when something with a small band of reinforcement on reality. Debt collectors are not stupid. You have access to your credit files. You can watch and see if you bought a new home or car, have cable services, or have in past purchases on credit.

In many cases, you can negotiate to settle debts unless you through Markoff said. The key to these negotiations is cash.

“If you have the money in hand, you tend to a reasonable solution as a promise to pay something in the future,” said Markoff. “They have already broken a promise to pay in the future, today, discussions really cash.”

Suppose you have an old debt that swelled up to $ 5000 in taxes, interest, etc. offer to pay $ 10 per month, it is undoubtedly not to fly. But if you offer $ 1500 in a lump sum, you have a better chance of finding a solution.

Clearly, the example that I have, it’s easy. How a lump of Bara offers a creditor or debt collector true, there are great differences. However, if you have to negotiate a solution to ensure that all the details in writing before a penny to the receipt or counsel.

Once the debt ratio on the records of payment and all your correspondents. My advice: blocking work on writing forever. Take often old and sells them sold, and it is possible, information about your payments may not along the collection of the new agency or lawyer. Years later, you could telephone regarding a debt they were long overdue.

It is a general rule, a statute of the border, where the possibility of debt collectors, the collection on an old debt. The statutory time limit for certain consumer debt varies, depending on their condition. Note that request, but even if the debt collector can not bring before the court for the debt, which remains still have the right to assemble, which is due.

Here are some tips from the National Association of Retail Collection Attorneys:

Do not be intimidated to pay is that the debt is not a home. You have the right to request reconsideration of the debt. When there was a mix-up or if you are the victim of identity theft, to be prepared, evidence. For example, identity theft, you may be asked for a police report. That is why it is important to make a report of such a file in the case of identity theft.

If you have a lawyer, himself or to have contact with his lawyer in the collection. After this step is taken, the collection of attorney can not communicate with your lawyer, not directly with you.

Do not ignore a summons to a court. Markoff said, if you are directly to the creditors of the date in court, you can avoid an action for payment. Surely it is better than if you pay garnisheed torn or funds from your bank account.

All the above, and cause one thing - communication. Avoid a call from a collector, debt is not far away. How Markoff, said: “Debt is not over time. They are not like good wine.

Given the current economic downturn, it will probably not be surprised to learn that the experience of all sectors to grow much cash. Unfortunately, with this growth, there has been an increase in the number of complaints filed by consumers, how they are treated by companies or lawyers try to pay them.

In the last few columns, I am both the debtor (What Debt Collectors Can not Do), and what to do if a creditor demand (Skip invites agencies Debt Will not Go Away).

Last week, the Federal Trade Commission released its latest report to the Congress of the recovery Fair Practices Act. The Act prohibits misleading, unfair and abusive practices in the Third debt collectors.

The FTC said that in 2007, complaints about the indebtedness of consumers and collectors has increased in absolute terms and as a percentage of all complaints directly to the Commission. To read the full report here.

The FTC has received complaints 70951 recovery in the year 2007. And 19.7% of the complaints claimed that collector harassed by the call repeated or continuous. The FTC said that nearly a dozen complaints that he had a collector obscene, profane, or other abusive language.

You have to pay people what you were indebted to the best of your ability, but you do not have methods of harassment. So the FTC to register your complaint. They should also participate in the Better Business Bureau, who are in a better position to negotiate you have a problem with an area of sensors.

Transactions with creditors of people assume that they are at the request of the trustee in the proceedings of protection should be aware that they may be required to restore the payment of this service within 90 days prior to a declaration of bankruptcy. Whether you are a party to litigation, entry into a trade agreement, a creditor on a compromise, a bad account, a lender negotiations for a workout, or simply the implementation of “business as usual, “all transactions with financial difficulties Parties should focus on the preferences of risks to be avoided.

As a preliminary matter, although most creditors would probably think it is unreasonable that you need it to return to a payment received a valid application, preference for the provisions aimed at ensuring that all creditors receive a fair proportion to the share of the fortune Du debtor .. ..

NEW UK schemes help to prevent the capture of health insurance, as a mediator suspended payments, but this is not the end of history.

Trapped means money will not go if the activity mediators have long had resulted in the insurance market in London and one of the important causes of the legal argument. Although insolvency insurance have a lower profile in recent years, they have not weakened. Nobody knows exactly how much is “prisoner” by one hour, but it will certainly to ten million pounds, maybe more.

Two new sets of rules already in a position, because of the second at the beginning of next year, to safeguard the money while facilitating the payment of premiums or claims. The first of AMP Office and with the active support of the Lloyd’s Franchise Board came into effect earlier this year. But the question remains of what this means in practice. The second of the Financial Services Authority (FSA) has a good intention, but the law of unintended consequences can have some undesirable side effects.

But before the debate on those two amendments, we will explore the current position. Although what follows is an overview, it should be clear how and why a creditor who wants to unlock captured face means waiting, without necessarily obtaining all funds due to the intermediary insolvent.

The current system is costly and complicated

Trapped funds, funds, which currently stands at coverholders, correspondents, brokers and agents and the premium will probably also, claims and fund insurance or reinsurance transaction.

The question arises frequently in the event of the insolvency of mediator, which is a creditor of intermediaries, and what, if any, to pay or parties involved.

If a company goes bankrupt, it may suddenly. These are payments that are not all-weather and the Bank and other systems can be in the center of the transaction.

It is a point where the funds are usually acquired intermediaries and are subject to bankruptcy, or they are not. It is difficult to say when, but the point is that the appointment of elected officials is a good starting point for the corresponding date.

If funds through intermediaries, the question arises as to what function, the allocation to the intermediary, it was in the house, a responsibility vis-à-vis the company insolvent, or was it easy for the payment?

The liquidator must allow for the identification of business and those who receive assets that intermediaries should bear in themselves and they come to recognize and distribution to creditors of the company.

If an asset, which are held by the company is not really a fortune to the value of the business, it is necessary not to keep the liquidator. Funds in an operating account in accordance with the rules of the insurance broking are usually not operated on a trust basis, there is a debtor-creditor relationship between the broker and the insured, or any other party who may be captured . Each insolvent, stakeholders in a mediator has a different perspective, and the rights and obligations under the contract. The persons concerned are assureds and reassureds score, insurers and reinsurers, manufacture and placement of brokers or other intermediaries in the chain broking; insolvent group, the intermediary company, and the regulatory authority.

The traditional rule is that acts as an agent for the insured, although the differences between the sea and non-marine, when it comes to accountability for the premium liability and money . The provisions on assumptions can be refuted, as well as contributions and damage to the real estate agent may, in fact, has received, on behalf of the insurer or reinsurer.

Receipt of the grant by the broker is not necessarily to obtain the insurance premium. Some parties have therefore deal with intermediaries seeking to strengthen their position in relations with intermediaries through the use of trusts, specific activities, or agency.

AMP reform on relief?

Since the beginning of the year, the Lloyd’s Franchise Board, as well as PGA BRAT Slip-sliding as a norm of the Lloyd’s market. One of the main objectives of the GPA and reform BRAT slip is faster premium payment of the money the insurance company to pay earlier and within the agreed terms. It is expected the rules of the AMP is finally speeding up the claims process.

A power more quickly the money would mean fewer resources to capture the market at any time of Insolvency and duplicate payments would be minimized. Insurers are in a central position, close monitoring of brokers’ payment of their loans and advances to customers, as well as the payment of compensation premium to the contractual deadline

Twenty-year relationship between bank branch president and debtors was not sufficient in itself to establish existence of fiduciary relationship with regard to debt.

Burgess v. BankPlus, 2002 WL 31619066 (Miss., Nov. 21, 2002). As discussed in greater detail infra with regard to defendant-debtors’ counterclaim for fraud, this action arose from a $32,000 loan that defendants Janet Burgess and C.M. Boyles took out with plaintiff BankPlus in May 1998. The defendants’ consumer note was secured by their pledge of three vehicles owned by them as collateral.

After Burgess declared bankruptcy, she voluntarily reaffirmed her debt to BankPlus in the Bankruptcy Court, notwithstanding that this was contrary to the protections she could have received in the bankruptcy proceeding. When Burgess later defaulted on the debt, BankPlus repossessed the collateral, sold the vehicles, and sued for the deficiency that remained–$18,308,81. The defendants counterclaimed for fraud, alleging that the bank had promised to “work with them” to repay the notes.

The bank moved for summary judgment both with regard to its claim as well as the counterclaim, and the trial court granted the motion. On appeal to the Mississippi Supreme Court, the judgment was affirmed.

With regard to the defendants’ claim that the bank owed them a fiduciary duty, which was breached, the court noted first that a bank ordinarily does not owe a fiduciary duty to its debtors and obligors under the UCC. An arms-length business transaction involving a normal debtor-creditor relationship does not establish a fiduciary relationship. Moreover, the power to foreclose on a security interest does not, without more, create a fiduciary relationship.

A fiduciary relationship arises only if the activities of both parties go beyond their operating on their own behalf, and the activity is for the benefit of both of them.

In this case, Burgess and Boyles asserted that they had a fiduciary relationship with the bank branch president, because they had known him for more than 20 years. Aside from this fact, however, there was no evidence that the dealings between the parties were other than those of an ordinary creditor and debtor. Further, without some proof that Burgess and Boyles changed their position in reliance on specific assurances made by BankPlus, there was insufficient evidence that the parties’ relationship moved beyond an ordinary creditor-debtor or mortgagor-mortgagee relationship.

The court accordingly held that the parties’ relationship was not a fiduciary relationship as a matter of law, and it affirmed the trial court’s grant of summary judgment to the bank.

Wronged employer may choose measure of damages for breach of employee’s duty of loyalty employee’s gain from wrongful act or employer’s lost profits.

Gomez v. Bicknell, 2002 WL 31890825 (N.Y.A.D., 2d Dept., Dec. 23, 2002). In February 1995, plaintiff Christian Gomez was hired by defendant Bicknell Advisory Services, Inc. (BAS), a company that provides merger and acquisition advisory services, especially in the information services industry, and whose president and sole shareholder was co-defendant Neff C. Bicknell. Gomez was given a salary, subject to an increase in accordance with an incentive formula.

By separate agreement, Gomez executed a covenant not to compete, which provided that he would not compete with BAS for two years after termination of his employment.

Approximately one year after he went to work for BAS, Gomez requested a more regular working arrangement. At the same time, BAS acquired US Pension Services in a deal that had been pending for several years and that required Bicknell to serve as Chief Executive Officer of the acquired company. In connection with these events, BAS drafted a new working agreement for Gomez, pursuant to which his salary was increased, and he was given a percentage of income “[b]ased on results through calendar year-end,” on the assumption that Bicknell would continue as CEO of U.S. Pension Services. Gomez was to receive one-third of the first $500,000 of income and one-half of any excess.

As any experienced litigator knows, obtaining a large judgment against a defendant is only one step along the path toward actually recovering damages in a lawsuit. If that defendant has had the foresight to engage in timely, effective asset protection planning, then the path to ultimate recovery can be a long and rocky one. Many asset protection strategies involve the use of one or more offshore jurisdictions. Encountering asset protection strategies with offshore components can be particularly frustrating for creditors who have already invested substantial time and money to obtain a judgment. Certain offshore jurisdictions, especially those known as offshore financial centers, lend themselves readily to use in asset protection strategies due to their short statutes of limitations, complex local procedural rules, and refusal to honor foreign judgments.

However, while the use of certain offshore jurisdictions provides judgment debtors with the opportunity to retain their assets (or at least to negotiate more favorable settlements with their creditors), some of the same jurisdictions also provide creditors with powerful offensive tools which may assist them in recovering assets. The tools discussed below were designed to assist creditors in the recovery of assets by curtailing the ability of defendants to transfer their assets prior to the entry of a judgment when the circumstances surrounding the litigation suggest that the defendants are likely to attempt to move their assets outside of their creditors’ reach. A potential defendant’s history of asset protection planning or the existence of certain asset protection vehicles could be enough to warrant the use of these tools in certain offshore jurisdictions.

The Quiet Revolution

Twenty-five years ago, a revolution began in England which eventually altered the legal landscape in much of the world as it pertained to debtor-creditor relationships. No gun was raised, no shot fired; but the face of the common law was changed and the spirit of the revolution continues to spread to this day. The revolution was begun by one man, Lord Denning MR, with the following words:

We are told that an injunction of this kind has never been done before. It has never been the practice of the English Courts to seize assets of a defendant in advance of judgment or to restrain the disposal of them … It seems to me that the time has come when we should revise our practice.1

The type of injunction imposed by Lord Denning is now commonly known as the Mareva injunction. The Mareva injunction and its progeny, including the creditor’s tactical nuclear weapon - the Anton Piller order, allow creditors to obtain disclosures of information and to seize assets in ways never before possible in common law jurisdictions.

The revolution spread widely, but its expansion did not sap its strength. In Australia, the Mareva injunction was applied for the first time on a world-wide scale. Closer to home, American courts have experimented with similar types of relief with mixed results. But what are the new weapons offered to creditors by this revolution and where did they come from?

Stated simply, Mareva injunctions permit courts in certain circumstances to take appropriate steps to ensure that judgments are not rendered valueless or meaningless through a debtor’s pre-judgment dissipation or concealment of assets. Such injunction typically freeze a debtor’s assets before the entry of a judgment and, in extreme cases, prior to the commencement of a case. Similarly, courts impose Anton Piller orders when there is a substantial likelihood that the legal process may be subverted through the wilful destruction of evidence. Such orders allow law enforcement officials acting on a creditor’s behalf to use force and surprise to gain access to documents or other evidence which a court has been convinced (on an ex parte, i.e., no-notice, basis) may otherwise be destroyed.

A Brief History of Mareva Injunctions and Anton Piller Orders

The Mareva injunction was introduced in the 1975 case of Nippon Yusen Kaisha v. Karageorgis.2 The facts of that case were straightforward. The Greek charterers for the hire of a ship owed lease payments to a Japanese shipowner, the plaintiff NYK. The whereabouts of the Greeks was unknown; their offices in Piraeus were closed. They did, however, have funds on deposit in a London bank. NYK reasonably feared that the funds would disappear before judgment. When the High Court trial judge refused to act on an ex parte injunction application, NYK sought immediate review on an ex parte basis from the Court of Appeal, which granted an injunction to stop any transfer of the funds. The bank holding the funds was notified, the funds were frozen, and ultimately the shipowners were paid.

A few weeks later, a similar emergency arose with respect to an Italian ship, the Mareva. The Court of Appeal again acted to freeze the London bank account of the charterer. Mareva Compania Naviera SA v. International Bulkcarriers SA.3 This second prejudgment seizure case gave a convenient name to the new common law remedy against what Lord Chief Justice Denning has described as “shifty customers and delaying or defaulting debtors.”

Railroad receiverships are suddenly relevant again. Long before the enactment of the first corporate reorganization statutes in the early 1930s, the federal courts developed a method of reorganizing financially distressed corporations, especially railroads, within the existing architecture of the equity receivership. From 1850 to 1932, these receiverships were the only way to reorganize a large American corporation. The last major railroads to go through receiverships completed the process decades ago. (1) Yet today, more than twenty years into the problem of widespread sovereign financial distress, (2) several leading scholars have begun to ask if railroad receiverships might hold important insights into sovereign debt restructuring. (3)

The analogy between the railroads of old and the sovereign nations of today rests on two key points. First, like sovereign borrowers today, early American railroads faced financial distress without the benefit of an applicable bankruptcy statute. Second, liquidation was no more an option for the railroads than it is for a sovereign nation. In this context, the development of the equity or railroad receivership seems to hold many promising lessons for reorganization of today’s troubled sovereign borrowers.

This Paper takes a closer look at the analogy between railroads and countries to see if it holds beyond its superficial appeal. In particular, I examine how railroad receiverships addressed the problems of holdouts and individual creditor action–the key stumbling blocks for most approaches to sovereign debt restructuring. (4) I argue that receiverships overcame these problems in ways that could be useful for sovereign borrowers.

But the utility of receiverships should not be overstated. Railroad receiverships operated in an age when federal equity jurisdiction was at its peak. This allowed the courts to exert significant power that might not hold today. Moreover, the receiverships were essentially in rem proceedings that allowed a district court to exercise its power irrespective of the geographic dispersal of railroad bondholders. (5) This power is of limited application in the sovereign debt context, as most sovereign assets are beyond a U.S. court’s in rem jurisdiction. Finally, and most importantly, a good deal of the receiverships’ apparent success in dealing with holdouts resulted from the generous treatment of existing creditors. This generosity may have limited the long-run effectiveness of the receiverships. (6)

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Q. After being given early retirement at age 52 eight months ago, my husband and I found our retirement plans in the garbage. He removed all of the money from his 401(k) and from most of our accounts to “get a higher return” _ as he put it. I just found out that he gambled away the vast majority of our assets buying high-risk stocks and options, has run our credit cards to the hilt, and even put a line of credit on our home. We still have one child in college. I have

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The Central Bankruptcy Court will tomorrow determine whether Thai Administrators Ltd will be appointed Thai Petrochemical Industry Plc’s (TPI) new administrator.

The court yesterday oversaw a meeting in which creditors, representing 99.68-per-cent of the stricken conglomerate’s Bt91.88-billion debt, voted overwhelmingly in favour of Thai Administrators Ltd (TAL)’s appointment.

The debtor immediately appealed against the vote.

Presiding judge Kamol Teeravetponkul yesterday said the court needed time to consider the matter, to ensure justice was done.

“We want a compromise between creditors and debtor, which will be

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You work hard for the money, so it’s only logical that you should want to protect it.

Although every physician’s worst nightmare is being wiped out as a result of a medical malpractice judgment, that rarely happens (see “10 years in legal hell,” p. 70). Typically, these lawsuits are settled before they ever go to court, and even if a judgment is handed down, the damages are often capped at your policy’s coverage limits.

More likely tugs-of-war over your assets involve nonmalpractice litigants (ex-spouses; business and investment partners; others alleging injuries related to a car accident, labor issue, or contractual dispute), the IRS or a bankruptcy court.

But regardless of who may one day be chomping at the bit to get his or her hands on your assets, the basic tenets of protection apply, so …

DON’T

WAIT. If you think only multimillionaires have assets worthy of protection, think again. It’s always prudent to separate your property from creditors and predators–before a possibility becomes a reality. “It’ll be too late if you wait until after you’re sued,” says Edward R. Collins, president of Collins Wealth Management in Parsippany, NJ. “A transfer of property out of your name in response to a lawsuit as a way of sidestepping creditors may be interpreted as a fraudulent transfer.”

DO

SHIFT RISK TO AN INSURER. If you’re insured to the fullest extent, your assets may go untouched. Aside from ample medical malpractice coverage, you should be insured against events such as death and disability, as well as have sufficient health and long-term-care coverage. A catastrophic injury could wipe you out

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