When judgment proofing has been overlooked it is common practice for a creditor to go after a person or business that does not pay their bill as agreed upon. When this happens, there are a variety of ways that the money awarded in a judgment is collected:
- Wage garnishment
- Bank account levy
- Real estate lien
However, in situations where there is little to no property owed or modest income earned, you are considered judgment proof and may be exempt to the seizure of wages or property to satisfy the debt. However, it is important to keep in mind that judgment proof is not a permanent label. Creditors often employ a variety of tactics to keep the collection option open. Even if the judgment can not be collected, debtors can, and probably will make you as uncomfortable as possible. Often they will call you, or anyone associated with you relentlessly to leverage payment. Additionally, you could be summoned by the creditor to answer questions about your income and assets.
A judgment against a company can have many unfavorable consequences. The experts here at ProAdvocate Group can provide long-term protection of your company and assets by establishing a Texas Joint Stock Company/Revocable Living Trust combination. Under this protection, your business’ assets are protected under private contract, which guarantees that your assets cannot be collected, despite a judgment. Such protection is important for any business regardless of how well it is performing. Situations can change in an instant and it is important to be prepared.
For more information on how to protect your business and the assets you have worked hard for protected, contact us today. We can provide you with a wealth of information about the benefits of a Texas Joint Stock Company and provide you with a sense of security and peace.