How To Appear Broke To Lawyers And Creditors

In this video, I share three strategies that can help protect your assets and thwart BS lawsuits. The strategies are designed to prevent attorneys, creditors, and snoops from taking your investment, personal residence, or business.

Learn what a creditor can collect against, such as garnishing your bank account, obtaining a prejudgment lien against your property, and foreclosing on your assets. This video explains how to make yourself appear broke so you can hide your assets from creditors and the importance of using strategies that make it difficult for someone to find assets in your name or business.

I break down the strategies for protecting your business by distributing cash out of your entity and into a separate LLC, creating a banking entity to hold cash used in your business, and entering into a line of credit agreement with your existing business to make it appear fully indebted.

“I want to talk about what a creditor can collect against because that is going to play into how we set up structures for you to avoid attorneys, creditors, and snoops from getting into your actual affairs and taking your assets.” 0:27

The important thing to remember is that even though you have assets today, they can be gone tomorrow if you don't take the appropriate steps necessary to appear less affluent.

By following our tips, you can avoid probate and protect your assets from creditors. Learn how to protect your personal residence, business, and investments today

If you have any questions or comments, please feel free to leave them below.

If you enjoyed our content, then be sure to subscribe and share it with your friends!

Show Notes:
0:00 Intro
0:26 What Can They Do?
2:22 #1 Mistake
4:50 Considerations
8:41 Personal Residence Trust
10:04 Protecting Investment Real Estate
13:09 Recap
13:53 Outro
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ABOUT CLINT COONS

Clint Coons, Esq. is one of the founding partners of Anderson Law Group, Clint has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.

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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.

#assetprotection #clintcoons

[masonsmith]

Man this would be super useful if I weren’t actually broke 😂

[robertkreamer]

Clint as a retired lawyer your advice has a degree of merit, but you and both know in a deposition you will be asked about any LLC you own or manage . Their are ways more sophisticated than a double llc or trust . More costly yes but useful if the asset base is large enough .
A few pointers : rent you house, long term lease for stability Sat 2 to 3 years auto Renew .
Lease your vehicles
Gold and silver and appraisal art
Bermuda captive or any insurance entity that you pay premium to and are a shareholder.
I am afraid most courts will pierce the fiction of your second llc . And any state can be ordered by the Feds to cough up your name . So offshore area that has No treaty with US .
Lots more to discuss but in general your idea works to stop
Nuisance suits . But if the Feds are after you, well that’s a different game 😎. Always pay your taxes and then play with the net . The post tax money is what you shield from spurious lawsuits .

[mikeflair]

I believe I am naturally protected, as best I know. 1) Rent My Home. 2) Drive 15 year old cars. 3) As I am retired now, Income is 100% based on IRA, SS, ACA Tax Credits...hard for others to break into those. My assets are good, 90% in the IRA - stocks and bonds. I can only see some exposure in checking / savings (small) and a Vanguard Traditional account (6 figures).

[LifeUnlocker]

1:40 appear worthless & indebted 2:25 3:45 4:30 UCC one 7:10 8:10 personal residence 8:50 personal residence trust

[clallen]

National Enquirer did something similar to this. They had a primary corporation that had loaned money to the National Enquirer at an absurdly high-interest rate.
The National Enquirer would borrow money each month to do a print run and then pay their staff and other operating expenses and all the profits flowed back into the
primary corporation. The Primary corporation even sued the National Enquirer and anyone who later sued the National Enquirer had to just get in line and wait to be paid.
Everything was owned by the primary corporation including the equipment and all the trademarks. If anyone ever did get the National Enquirer they would find out
that it was just an empty shell that didn't even own the name The National Enquirer.

[sidtanec]

this is such a boss move. something that was an asset becomes a liability to someone else who wants to forcefully take away your business. 🤣

[NoSpam]

I'm always amazed that people like OJ Simpson don't do this stuff to protect their assets. There was an Australian lawyer who came up with some wonderful stuff to avoid paying taxes which is usually harder to do. I have a copy of one of his many books, "How To Not Pay Taxes"

[JoeR]

I don't have to TRY to appear broke.

[georgebrunelle]

That was a very enlightening presentation, but it covered only one side of the issue. I would love to see a video from the creditor's point of view -- addressing the countermeasures available to overcome these strategies. As the old saying goes, "Any fool can get a judgment, but it takes a real lawyer to collect on one."

[brad]

It's worth noting that this anonymity is not absolute, as law enforcement agencies and courts can compel the disclosure of ownership information under certain circumstances. E.g., if the LLC is involved in a legal dispute, a court may order the disclosure of the owners' identities.

[daleparkes]

I understand some states such as Texas and Florida are such that creditors cannot touch your house no matter what.

[mathgasm]

I was an auditor for a hotel management company and they have a series LLC setup.

[has]

One very important thing to remember is that any asset protection measures need to be taken BEFORE a lawsuit. Otherwise, it looks like a Fraudulent Transfer and a court can nullify transfers of assets, corp structures, etc. if certain criteria are met. Single-member LLCs are problematic. If you are the only person in the entity it can be considered an alter-ego and can be subject to enforcement of a judgment.

All in all, these are reasonable strategies for discouraging nuisance lawsuits since most attorneys and creditors buy a canned asset check through Lexis, CLEAR, IRB, an inexperienced PI, etc. and don't hire a competent asset investigator - who would pick all this apart in an afternoon. That being said, even if it's not "judgment -proof" it does provide a degree of incentive to reach a settlement rather than go to court and unwind it all.

[kandylandfarms]

Clint as a insurance agent here in Ohio, you would need to name the LLC's as "Named Insureds" all and all good info.

[flandmore]

Robert Kreamer
Addressed the flaws I saw coming. Fl land trusts are not recorded and the homestead exemption is unlimited.
South Dakota has interesting Legacy trusts with significant protections.
In my experience LLCs are recorded in the home state domesticated and any other state as foreign entities.
A serious draw back to your strategy is refinancing. Quite a collection of documents at closing and the new lender will wonder why you have a substsntial 2nd mortgage. Also where did the funds come from to settle the 2nd at closing. Then the IRS becomes real interested when the title company files a report with them from settlement docs. You may be considered for money laundering and so it goes....

[chuckcarlson]

In California, if you deed transfer your house, you lose Prop 13 tax base and your house gets assessed at market rate, which means your property taxes will go up a lot.

[stephenyardon]

Thanks!! Clint thanks for sharing this valuable Information. Continue the extraordinary work.

[bobbyvee]

I learned much more from the "comments" than I did from this presentation!

[mrvincentpcspes]

Great Video. But the same rule applies. "They'll only sue you if there's money."

[alb]

Clint, you're the man! My thanks!