Post-Judgment Planning and Asset Protection

Post-Judgment Proceedings: Preparation is Key Common mistakes in preparing an asset protection plan The Citation to Discover Assets proceeding –the last place an indivdual wants to end up. The lawsuit has been lost, liability has been determined, and you have ended up at the mercy of a judgment creditor. Experience has allowed me to group post-judgment defendants into two groups: those who have prepared for the worst and those who have not. You can spot the unprepared a mile away. They are the ones pacing up and down the hallways of the Daley Center, a sheen of presperation across their forehead with the tell-tale dark circles under the eyes. The Citation process for these individuals is painful. The creditor’s attorney will grill them about every single asset, bank account, credit card and source of income they have ever come across. At this point, bank accounts in their name have probably already been frozen, making it difficult for them to even hire an attorney to protect whatever little interests they may have. A word of wisdom – be prepared. The following are common mistakes that many people, especially entrepreneurs, make when trying to protect their assets. 1. Too little too late. Failing to plan prior to problems arising is the most frequent mistake people make when it comes to protecting their assets. Once a lawsuit has been filed, even before any liabilty has been determined, any transfers of assets from one entity to another can be scrutinized. For example, if during the course of a lawsuit against an individual that individual transfers his home from his personal name into an irrevocable trust or family limited partnership the court can rule this type of transfer to be a fraudulent conveyance. If a transfer is deemed to be a fraudulent conveyance, the transfer will be void and placed back in the original position and used to fulfill the creditor’s judgment. It is extremely important to initiate your asset protection plan early – long before potential creditor issues arise. 2. Using a one size fits all approach. An asset protection plan should be tailored to you and your business’s specific needs. A plan that worked for your neighbor may not be the right plan for you. Many people use the wrong entity structures – you should find one that fits your specific needs to gain the maximum protection from potential creditors while simultaneously giving you the best tax advantages. There are a variety of options out there – the limited liability company, irrevocable trust, private land trust, s-corporation, living trust, tenancy by the entirety and many more. All with unique characteristics appropriate for specific purposes. Find an attorney that will take the time to discuss your specific needs and find the right plan for you. 3. Failing to properly title and transfer assets. An asset protection structure cannot be effective if you do not title or transfer your assets into the structures you have created. Furthermore, in slightly more complex cases, multiple structures are established and some categories of assets should be placed in one entity while others are placed in a separate entity. Be sure to place your assets into the proper entity and title them correctly. 4. Not respecting the formalities of an entity. A good asset protection plan does little good if the formalities of the specific entities used are not recognized and followed. A judgment creditor will always check to determine whether your limited liability company or family limited partnership is run like a legitimate entity or if the entity – as it has been treated –is a sham. This means that all the work done to create this entity and place certain assets into it was essentially worthless and the protection it was supposed to provide is void. Be aware of the formalities that your entity structure requires. Ensure that they are followed to allow for maximum protection. Plan ahead, find someone who will tailor a plan to your specific needs, be informed about the rules and formalties of the structure you use and ensure that assets are positioned correctly. These small steps are what will distinguish the prepared from the unprepared. The prepared individual will walk into the post-judgment proceeding with confidence that some of their major assets – such as their home and personal bank accounts – will never be touched by the judgment creditor. This article was written by Abby Gartner, Esq., an Associate Attorney for Robertson Law Group, LLC. Abby Gartner may be reached at 312-854-7102 or Abby@RobertsonLawGroup.com. Abby Gartner concentrates her practice in commercial litigation and distressed business planning, corporate law, and asset protection law including Citations to Discover Asset's Proceedings. Robertson Law Group, LLC handles a lot of Citations to Discover Asset's Proceedings due to our expertise in asset protection and liability planning law in downtown Chicago, Illinois. Keywords: Citation to Discover Assets Chicago Attorney, Daley Center Citation to Discover Assets, lawyer Daley Center Citation to Discovery Assets, Abby Gartner Attorney Chicago, Asset Protection Lawyer Cook County, Asset Protection Lawyer Chicago, Circuit Court of Cook County Citation to Discover Assets

Physician Independent Contractor Agreements

Today's topic is Physician Independent Contractor Agreements. An independent contractor agreement is a legal agreement between a Physician or otherwise known as a "Doctor" with a medical practice or hospital. When we represent Physicians or a Medical Group, there are key terms that we want to keep in the independent contractor agreement or watch out for to protect our client. Generally, an independent contractor agreement is an written agreement where a medical practice does not want to assume the payroll taxes of a physician. Thus, control is the ultimate issue that the Internal Revenue Service evaluates to determine whether the agreement is truly an independent relationship or an employer or medical provider's way of avoiding the responsibility of paying payroll, fica, and social security taxes. Robertson Law Group, LLC generally handles physician independent contractor agreements or employment agreements in downtown Chicago, North Aurora, and Naperville, Illinois. When we review these legal agreements, these agreements should highlight who is responsible for payment of payroll, fica, and social security taxes. Ultimately, an independent contractor is legally responsible for making annual or quarterly payroll taxes. In our experience, it is easy for an independent contractor to develop problem with IRS, payroll, or income taxes. We have a bi-lingual and tax attorney that concentrates in assisting physicians and doctors with state and federal payroll, employment, and income tax related problems. Generally, an employment agreement will require the employer or the medical practice to be responsible for payment of the employment-related payroll taxes. It is a great idea for a hospital, small medical practice, or a solo medical practioner should strongly consider using a payroll tax service such as ADP, paychex or paycore. In my experience, this is an excellent idea if you live in the Western Suburbs of Chicago or in the downtown Chicago region. An independent contractor contract should highlight whether a non-compete agreement exists and limit the time and geographic scope. In my experience limiting a physician or healthcare specialists geographic restriction greater than twenty (20) miles is too broad for most independent contractor agreements. As a rule, an appropriate time restriction is one (1) or two (2) years with my preference being one (1) year. I prefer a one year covenant not to compete for physicians and dentists in downtown Chicago, North Aurora, or Naperville because most courts will be less concerned that it is too burdensome to a physican, dentists, or doctor. One mistake most independent contractor agreements or physician employment agreements make are making them too broad. Another consideration for employment or independent contractor agreement is the jurisdiction in case of a dispute. Often times, a physician independent contractor agreement or an employment agreement will state the jurisdiction is where the principal place of business exists for a small medical practice, a healthcare institution, or hospital. For example, let us assume that you are a doctor or physician in Aurora, Illinois, in the County of Dupage. Your healthcare provider or physician office will likely have the Circuit Court of Dupage County be the jurisdiction for disputes. Often times, either the loser of the dispute or the independent contractor or employee will be responsible for payment of their employer's legal fees and costs in case of a dispute. In my experience, another consideration that most physician want to consider is whether outside employment or consulting is allowed. Most employers or physician practice groups will allow it, but it will require pre-approval before the employer will grant you, the doctor or physician, the approval to make outside consulting agreements or participate in healthcare fairs or act as a physician in a pro-bono capacity. Another consideration is whether your malpractice insurance for the patients you saw during your stay at the hospital or medical practice group will expire upon your termination of employment or independent contractor agreement. You may want to get notice of any termination of coverage in case of a malpractice or professional lawsuit especially if you are a surgeon, emergency room physician, or a ob-gyn physician. Often times, in my experience, I notice that surgeons, emergency room physicians, and ob-gyn face a greater liklihood of malpractice exposure. Physicians also should consider incorporating as an S corporation or Medical Corporation. This is important because a physician or doctor wants to limit their personal liability exposure in case of a breach of contract dispute. This rule also applies to doctors and chiropractors. In my experience, most physicians or doctors around the western suburbs of Chicago or Dupage County area or Cook County (Chicago) do not incorporate. Instead, most physicians or doctors practice as a physician in their personal name. This means that employees and your employer may sue you in your personal name. Incorporating could limit the suits against you as a physician or doctor. In conclusion, Robertson Law Group, LLC specializes in physician asset protection, wealth preservation law for physicians and medical practice groups, surgeons, ob-gyn doctors, and emergency room physicians. Robertson Law Group, LLC services the counties of Cook County, Dupage County, Will County, Kane County, & Kendall County for physicians, doctors, medical practice groups, and hospitals. Unlike most law firms, our attorneys and team have a significant amount of experience representing physicians and doctors with respect to independent contractor agreements, employment agreements, consulting agreements, non-compete agreements, non-disclosure agreements, and many other physician or dentist related medical or legal agreements. Sean Robertson is Managing Partner of Robertson Law Group, LLC. Sean Robertson resides in Naperville, Illinois and has significant expertise and experience in negotiating, drafting, and revising independent contractor agreements, employment agreements, and the purchase and sale of a business especially a medical practice group, dermatologist group, or other solo medical practioner practice. Sean Robertson may be reached at 312-854-7102 or 630-637-1053. Our website is www.RobertsonLawGroup.com. Keywords: physician employment agreements Chicago, Cook County physician employment agreements, Chicago doctor independent contractor agreement, Chicago physician employment agreement, medical practice group asset protection, Chicago asset protection physicians, physician wheaton asset protection, asset protection Naperville, Asset Protection Attorney Plainfield, Illinois, Asset Protection Lawyer Bolingbrook, Illinois, Medical Practice Planning Attorney Naperville, Medical Practice Planning Attorney Chicago, Non-Compete Agreements Physicians Cook County, Non-Compete Agreements Chicago Physicians, Physician Non-Disclosure Agreements Naperville, Physician Non-Compete Agreement Oak Brook, Illinois, Doctor Ob-gyn asset protection attorney Chicago, OB-GYN asset protection attorney Naperville.

WVON Radio Interview and Ineffective Estate Planning Law

This morning, I was on a panel discussion on WVON on the Southside of Chicago. During this discussion, we talked about why a Quit Claim Deed to your adult child is a bad idea. During this discussion, we talked about how a lot of African-American clients and people in general believe that quit claiming their home to add one or more of their children's names will prevent a court process called probate court. Generally speaking, probate court is a court process that is required after the last spouse of a married couple is deceased or a person deceases without a husband and only children. A probate of the estate of the deceased person is necessary because legal title cannot transfer solely by a quit claim deed in Chicago or Illinois. A Quit Claim Deed is a legal way of transferring ownership of real estate to another person. Legally speaking the person that got the Quit Claim Deed is a part owner of the real estate for legal purposes. However, their ownership is not recognized by the mortgage company (if there is a mortgage) because the mortgage is between the financial institution and the borrower. The reason a Quit Claim Deed is not effective is because legal title only can be transferred upon the person having the mortgage transferring good title. Generally, a Quit Claim Deed only passes the buck onto the adult children decease because one cannot sell or refinance real estate in Cook County unless they have good title. Robertson Law Group, LLC is a boutique business and family law firm concentrating in estate planning, estate and gift tax planning, elder law, and wills and living trusts. Robertson Law Group, LLC is based in downtown Chicago and North Aurora. Our downtown Chicago phone number is 312-854-7102. Our Western Suburbs phone number is 630-637-1053. Our website is www.RobertsonLawGroup.com.

Wealth Preservation for Healthcare Professionals

Wealth Preservation for Healthcare Professionals By: Mildred I. Herrera, Esq., LLM (Tax) A comprehensive wealth plan preserves your assets and provides a smooth transition upon your death, incapacity, and/or beyond your life. A wealth preservation plan combines Trusts, Family Limited Partnerships, Limited Liability Companies, and Real Estate Preservation Trust, to name a few, to enhance your estate and asset protection and decrease your tax liabilities. Preserving your assets against malpractice suits, divorce, business interests, or risky investments requires the same type of individualization that a healthcare professional considers in prescribing a health regime. Divorce, business partnership disputes, failed business ventures, and breach of contract litigation are the most likely liability risks that threaten personal assets. Oftentimes, a Corporation or LLC does not protect against partnership, divorce, or business conflicts. These liability risks surprise physicians and threaten their and their family’s financial security. Generally, a general liability or malpractice policy does not cover these types of risks and these risks are generally ignored by most attorneys and healthcare professionals. Additionally, asset protection must plan for your beneficiary’s divorce and creditor concerns because most families and individuals hate their in-laws walking away with their hard earned assets. For high-risk professionals like healthcare providers, attorneys, business owners, and anybody with businesses or investments, putting all your eggs in one basket is too risky. The creative use of asset protection tools like Trusts, Family Limited Partnerships and Limited Liability Companies, to name a few, can be used to create a comprehensive asset and wealth preservation plan. Done properly, the loss of a risky investment should protect your other hard-earned assets and income. Healthcare professionals must act now to take advantage of economic uncertainty and possible claims. A solid asset protection plan must be implemented prior to a possible lawsuit or any attempts to shield your assets could be considered a fraudulent transfer. Also, consider how looming tax changes will affect your wealth and estate plan. A conservative yet creative estate plan must provide flexibility and protection. We rely on healthcare professionals to preserve our health, let a competent attorney assist in preserving your assets and legacy. You have worked too hard to allow a liability risk jeopardizes your retirement and one lawsuit could threaten your life’s dream and family’s security. Mildred I. Herrera is an Illinois licensed attorney with a Masters in Taxation (LLM (Tax)) with the Robertson Law Group, a boutique businesses and family law firm. The emphasis of her practice combines business, estate and tax planning. She can be reached at (312) 854-7102. Our website is www.RobertsonLawGroup.com. The information contained in this article should not be construed as personalized legal or tax advice. Key words: Physician Asset Protection, Illinois Asset Protection, Estate Planning Attorney for Physicians, Physician Estate Planning Chicago lawyer, Physician Asset Protection Attorney Chicago, Chicago Medical Doctor Estate Planning Lawyer, Asset Protection Lawyer Illinois, Doctor Estate Planning Attorney

Daley Center Post Judgment Proceedings: Citation to Discover Assets

The most common mistake I keep on hearing about are Defendants getting their bank accounts frozen and their money taking after a judgment takes place. A judgment is essentially a ruling by the Circuit Court of Cook County at the Richard J. Daley Center that a Plaintiff is entitled to a certain amount of money as a measurement of damages.

I got two phone calls today with a similar story. This story is Plaintiffs catching a Defendant by surprise within 30 to 60 days after a judgment. After a judgment is recorded, a Plaintiff files paperwork called a Citation to Discover Assets. A Citation to Discover Assets are a deposition under oath with the purpose of finding your money and assets to collect on money that is owed to you. A common tactic is fear because Defendants are likely to pay a Plaintiff if they fear something such as a lien against their home or losing their home. The problem is most Defendant's attorneys do not properly explain the Post-Judgment proceedings because most Defendant attorneys do not practice a lot in the Post-Judgment proceedings. Defendants must expect that a Plaintiff will issue a Wage Garnishment Order to their bank and freeze their accounts. This will cause NSF fees, bounced checks, and Plaintiff to get money that Defendant is legally entitled to. Most Defendants fail to anticipate this and do not know how to properly prepare for this. In Illinois, a Defendant has certain exemptions under the law. The most common exemption is $4,000 personal property wildcard exemption. This wildcard exemption is to allow a Defendant to protect their bank account or cars (i.e. personal property) from a Plaintiff. However, most Defendants do not know how to properly file the paperwork claiming their wildcard exemption. This means Defendants lose their money and are caught off guard during already difficult and trying financial circumstances. An experienced attorney can anticipate a Plaintiff's attorneys' responses prior to them, can inform and educate a Client on what to expect. A prepared and educated Defendant is a Defendant that is more financially secure.

Sean Robertson is an attorney that assists Defendants in Cook County at the Circuit Court of Cook County with post-judgment and post-trial litigation. Sean Robertson can be reached at (312) 498-6080 or Sean@RobertsonLawGroup.com.

Daley Center Post Judgment Proceedings: Citation to Discover Assets

The most common mistake I keep on hearing about are Defendants getting their bank accounts frozen and their money taking after a judgment takes place. A judgment is essentially a ruling by the Circuit Court of Cook County at the Richard J. Daley Center that a Plaintiff is entitled to a certain amount of money as a measurement of damages.

I got two phone calls today with a similar story. This story is Plaintiffs catching a Defendant by surprise within 30 to 60 days after a judgment. After a judgment is recorded, a Plaintiff files paperwork called a Citation to Discover Assets. A Citation to Discover Assets are a deposition under oath with the purpose of finding your money and assets to collect on money that is owed to you. A common tactic is fear because Defendants are likely to pay a Plaintiff if they fear something such as a lien against their home or losing their home. The problem is most Defendant's attorneys do not properly explain the Post-Judgment proceedings because most Defendant attorneys do not practice a lot in the Post-Judgment proceedings. Defendants must expect that a Plaintiff will issue a Wage Garnishment Order to their bank and freeze their accounts. This will cause NSF fees, bounced checks, and Plaintiff to get money that Defendant is legally entitled to. Most Defendants fail to anticipate this and know how to properly prepare for this. In Illinois, a Defendant has certain exemptions under the law. The most common exemption is $4,000 personal property wildcard exemption. This wildcard exemption is to allow a Defendant to protect their bank account or cars (i.e. personal property) from a Plaintiff. However, most Defendants do not know how to properly file the paperwork claiming their wildcard exemption. This means Defendants lose their money and are caught off guard during already difficult and trying financial circumstances. An experienced attorney that anticipates a Plaintiff's attorneys' responses prior to them, can inform and educate a Client on what to expect. A prepared and educated a Defendant is a Defendant that is more financially secure.

Sean Robertson is an attorney that assists Defendants in Cook County at the Circuit Court of Cook County with post-judgment and post-trial litigation. Sean Robertson can be reached at (312) 498-6080 or Sean@RobertsonLawGroup.com.

Are You Judgment Proof? What Happens When You Have A Judgment?

A judgment is a lawsuit that was successful. A judgment enables a Plaintiff to perform certain actions against you or your business in order to collect the money that is owed to them. In Cook County, Illinois, a judgment is enforced in Room 1401 of the Richard J. Daley Center. The purpose of Room 1401 is to coordinate Citations to Discover Asset's proceedings. Essentially, a Plaintiff must file appropriate paperwork and give notice to the Defendant to show up. A Defendant is sworn in under oath and is asked a series of questions. These questions are essentially designed to find out whether you have any money that the Plaintiff can take. These assets include bank accounts, business interests, real estate, cars, personal property, accounts receivable and other assets.

In Illinois, a Defendant has a $4,000 personal property exemption, which means that a Defendant can protect up to $4,000 of personal property without the Plaintiff seizing this money/assets. For example, a common asset that is frozen is a banking account. If you own a checking account with $5,000, you have a legal right to exempt $4,000 in personal funds. Anything above $4,000 may legally be seized by the Plaintiff. Practically speaking, a Plaintiff will issue a Garnishment Citation to your Bank and your bank will set aside all of your monies in your bank account. The Plaintiff is entitled to every penny unless you file appropriate paperwork at the Circuit Court of Cook County in a timely manner.

After a judgment occurs, typically thirty days will go by and the Plaintiff will begin collecting against your bank accounts. As a rule of thumb, a Defendant should be aware that the Plaintiff will try to surprise them and freeze their bank account. Thus, a Defendant should be careful about writing checks because the checks will bounce and NSFs and bank fees will be substantial. The good news is with an attorney, you can get a court order to force the Bank to waive the Bank fees if your funds are protected by federal and/or state law.

Moreover, when a judgment occurs, a lien automatically is placed on any real estate that you own in your personal name. This is one reason it is important to have a Private Land Trust set up. A Private Land Trust prevents a judgment from attaching to your real estate. However, you cannot fraudulently transfer your house or investment property into a Private Land Trust to prevent a judgment being attached to your property when proceedings are occuring. Preventing a lien against your property interest is important because you must pay off all liens prior to selling your real estate. Therefore, a lien may prevent you from ever being able to sell your real estate without paying off a lien. At first glance, many people desire to pay off their bills. However, there are times when it is simply impossible to pay your judgment off. I had one particular client that desired to settle his judgment until he realized that the interest alone on his case was over $5,000 per month. It simply was impossible and impractical for him and his wife to pay this judgment. Fortunately for them, they had hired my law firm to protect their assets. Our asset protection plan worked as planned.

Sean Robertson is an Asset Protection Attorney for Physicians, Dentists, and Business Owners. If you need an asset protection attorney, Sean Robertson is happy to assist you. Sean Robertson may be reached at (312) 498-6080.