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Collections Law/Court Summons. No Attorney will take the case.

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Expert: Creditwrench - 8/29/2009


Question
I have a court summons from an attorney/debt collector for a citibank credit card. I have contacted a number of attornies from the NACA list online, and I have been unable to retain legal help. I filed an answer on time, and now my court date is less than a week away. At this point I am trying to separate any accounts from my husband. We have a joint account that his paycheck is direct deposited into. I will be removed from that account on Monday. Will they still go after that account even if I am removed from it? What about custodial savings accounts for my children? How can I haven't worked in a few years, but I intended to start working again this fall, but I don't make much money, and I work for myself as a sole prop, so my business checking account only has a few hundred dollars. Should I turn it into an LLC to protect any future money made?

Answer

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While LLC corporations are very popular and do have their advantages I don't care much for them as an asset protection vehicle when one must deal with debt collectors. I like full Delaware corporations better. They are much more secure and almost impossible to crack if they are set up correctly. Done right your name will never show up anywhere and that is the way it needs to be. Your corporate bank accounts will also never be directly traceable to you because you can set one up in any state with no problem. I live in Oklahoma but my corporate bank account was set up in one state but the state I set it up in only has a branch of that bank so they have to transfer the account to yet another state. That makes it very difficult to trace indeed. Furthermore you want to let me set up your corporation for you and then transfer it to you before you do your IRS registration or set up your bank accounts so I don't have access to that information but only IRS knows who actually owns the corporation itself. There is absolutely no governmental data base that tells anybody who actually owns the corporation because that is all done internally and there are no records of the transfer. I stay on your board of directors but have no actual voting or administrative rights. That gives you some additional protection because having others on your board of directors makes it more difficult to penetrate the corporate veil by far. Setting up such corporate accounts for people is one of the things I do. Yes, they can go after custodial savings accounts for your children but you can put them into your corporation and their savings accounts as well.
Doing the full anonymous Delaware corporation is more expensive but well worth the full security it offers. I'm not surprised you can't find an attorney to help you but on the other hand you can do far better defending yourself then any attorney is likely to be able to do. It isn't hard to learn how to do it if you have a teacher who can teach you how to do the things you would have an attorney do for you so why pay an attorney? You can learn how to do it quickly and for a whole lot less money and teaching is something else I do.  

Creditwrench

Expertise

Debt Collections law, Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), federal law, how to properly answer court summons for collection cases, how to prepare federal cases against debt collectors, how to deal with debt collection phone calls.

Experience

I've been an active consumer advocate for more than 40 years and have helped hundreds of people win cases against debt collectors as well as helping them defeat demands for summary judgment lodged against them by banks, debt collectors and defeat mortgage foreclosures and keep their homes.

Education/Credentials
Paralegal courses for the most part.
I have been teaching people how to deal with judgments, mortgage foreclosures and other such problems both on and off the internet for many, many years. I am a Richard Cornforth information provider ever since 2000 and worked with many other organizations and causes since 1980. I was Oklahoma State Chairman for the nationwide drive to defeat the Constitutional Convention which was proposed by various factions within our federal government such as the Council of State Governments and the National Organization of State Governors who were working hard to organize a Constitutional Convention to be held in 1995 for the purpose of rewriting our American Constitution to be more acceptable to the United Nations. I worked with Senator Charles Duke of Colorado and Senator Don Rogers of California and many others across the nation to keep them from getting the number of delegate states required to lawfully hold a Con-Con and we were successful. I have worked with many other legislative issues in Oklahoma and have always been very successful.

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