Have you noticed how COVID-19 related news is starting to slowly take a back seat to other events that have gripped our nation and the world? We are slowly starting to come out of the coronavirus paralysis, and the hell hounds of litigation are about to be unleashed.
During the COVID-19 lockdown, everything was brought to a standstill. Landlords were not evicting. Lenders were not enforcing loan guarantees. Even government agencies were waiving late payment penalties. The paralysis is now wearing off—and creditors and plaintiffs are chomping at the bit.
We are already seeing this with some of our clients. Landlords are sending demand letters and reminders that while they may not be evicting just yet, loan defaults carry significant legal consequences. Lenders are reminding borrowers that it is time to pay up. The days of playing nice are drawing to a close. This means lawsuits and enforcement actions are coming, and we all need to prepare.
We have seen what happens to borrowers and leases who default following the 2008 recession. There will be lawsuits, judgments, and collection actions. Tenants and business owners will lose their homes. Developers and promoters will get sued by investors. Lenders and landlords will enforce personal guaranty.
Our clients are often surprised to find out that their homes, savings accounts, and sometimes even their retirement plans, can be taken away from them. Collection remedies available to creditors, and property exemptions available to debtors, vary from state to state. Florida and Texas are debtor-friendly, and California is creditor friendly.
If you have ever signed a personal guaranty or may face lawsuits because of the downturn in your business, now is the time to be pragmatic and act. Do not hope for the best—that is not a strategy, only fear and wishful thinking. Plaintiffs and creditors will have no qualms about taking your home, raiding your bank or brokerage accounts, forcing the sale of your collectibles, and otherwise depleting your life savings.
But you can act now and protect your assets. If you act quickly you will likely get to keep all or most of what you have. Over the past twenty years we have developed a multitude of asset protection structures that will either make your assets unreachable, or will make your assets so difficult and expensive to reach that your creditors will be forced to settle with you.
Contact us before it is too late. We have helped hundreds of clients who were in exactly the same position that you are in now. We will be happy to advise and help you.
