Judgment-Proof Your Assets Even After Being Served a Lawsuit or Before Final Judgment from a Court of Law
Yes, you can legally protect and save your assets and property from a future creditor or judgment holder even after being served a lawsuit or any time before a Final Judgment or Order from a Court of Law.
This is accomplished by exchanging your assets for 1,000 shares of stock from an Unincorporated Texas Joint-Stock Company (TJSC) that is set up by private contract under the common law. More importantly, the TJSC is also recognized by Texas Statute and Federal Statute as a separate legal entity and separate person under the law.
The important key as to why this legal method works is because the exchange constitutes a “private contract”. Other entity programs do not work to save your assets because the assets are transferred into them by public contract or gift.
A transfer by public contract or gift is subject to the Fraudulent Transfer Act of State and Federal law. A creditor or judgment holder will—after he determines that you as an individual debtor do not have sufficient assets to pay—ask the Court that issued the judgment for an Order forcing you to bring back the assets previously transferred by public contract or gift into your individual estate to satisfy the judgment.
The Fraudulent Transfer Act may be applied to transfers of assets to Corporations, LLC’s, LP’s, LLP’s, Irrevocable Trusts, etc., even in prior years before the lawsuit was filed. The creditor will plead that you made this transfer in contemplation of defrauding creditors several years ago.
However, the private contract of your TJSC is not subject to the Fraudulent Transfer Act as declared by the U.S. Constitution, your State Constitution and several U.S. Supreme Court cases and others upholding the legal principles involved.