Hello,
I have been fighting a lawsuit for two years. When this lawsuit started, I had about $2M in net worth. About $1.5M is tied up in two properties in California. The rest was cash. The plaintiff has been granted an injunction on those two properties such that I cannot sell them until the court decides who they belong to. I can still use them. He is suing me for about $7M (yes, more than I have ever had) because he wants to blame his dishonest tax behavior on me (I was his CPA/CFO). Through many unfortunate events, I have now burned through all of the money that is not frozen by the courts.
Which means that I cannot pay a lawyer to defend against this lawsuit because the lawsuit itself has frozen everything I have left.
How can I possibly defend against this ridiculous lawsuit when the only money I have to do so is itself frozen by the lawsuit? I must pay lawyers to help defend in this case, it is very complex. But if I cannot pay the lawyers, how can I avoid a default losing judgement? Can I file for bankruptcy to release some of the assets to defend against the lawsuit? Can my lawyer place a lien on the properties such that he will be paid even if we were to somehow lose the lawsuit? Can I find a creditor who would loan me money to defend?
The primary lawsuit is filed in Texas (where the business-in-question was conducted, and where the man suing me lives), but there is also a lawsuit filed in California.
Thanks for any help you may be able to offer. I am particularly interested in any similar cases that you know of. I would love to read up on how others have solved this problem.
I have been fighting a lawsuit for two years. When this lawsuit started, I had about $2M in net worth. About $1.5M is tied up in two properties in California. The rest was cash. The plaintiff has been granted an injunction on those two properties such that I cannot sell them until the court decides who they belong to. I can still use them. He is suing me for about $7M (yes, more than I have ever had) because he wants to blame his dishonest tax behavior on me (I was his CPA/CFO). Through many unfortunate events, I have now burned through all of the money that is not frozen by the courts.
Which means that I cannot pay a lawyer to defend against this lawsuit because the lawsuit itself has frozen everything I have left.
How can I possibly defend against this ridiculous lawsuit when the only money I have to do so is itself frozen by the lawsuit? I must pay lawyers to help defend in this case, it is very complex. But if I cannot pay the lawyers, how can I avoid a default losing judgement? Can I file for bankruptcy to release some of the assets to defend against the lawsuit? Can my lawyer place a lien on the properties such that he will be paid even if we were to somehow lose the lawsuit? Can I find a creditor who would loan me money to defend?
The primary lawsuit is filed in Texas (where the business-in-question was conducted, and where the man suing me lives), but there is also a lawsuit filed in California.
Thanks for any help you may be able to offer. I am particularly interested in any similar cases that you know of. I would love to read up on how others have solved this problem.
