Superior Lien to make oneself collection proof?

[uofaguy]

Hi all,

I ran across a company that claims to have a system whereby a creditor is unable to collect on your unsecured debt. Being the ever skeptical person that I am (if the above is true, why would anyone file BK?), I phoned for more information.

The company claims they work with a law firm to place a "superior lien" on you & this prevents creditors from pursuing collection against you (unless the creditor is willing to pay $250k to remove this superior lien). The premise is that with the lien in place your creditors will see that they cannot collect anything from you, and it allows you to negotiate with the creditor (should you choose to do so) for pennies on the dollar and on your schedule. They are supposedly researching some info for me and will get back to me.

Has anyone heard of this approach? If so, is this legal & legitimate? I wasn't able to find anything on the web - - which makes me even more leery.

Thanks,
Jon

[lrprn]

I ran across a company that claims to have a system whereby a creditor is unable to collect on your unsecured debt. ... The company claims they work with a law firm to place a "superior lien" on you & this prevents creditors from pursuing collection against you (unless the creditor is willing to pay $250k to remove this superior lien).

'Superiori lien' just means that they file a lien first (makes the lien 'superior' because it's the first lien). Question I would be asking is what does the company use as the legal reason to file a lien? For them to do that, you have to owe them money....hmmmm....do I smell a way for them to get you to sign over assets to them????

Jon, when it sounds too good to be true, it is. Just walk away from this shell game. There's no easy, painless way out of serious financial trouble, no matter what this company's marketing says.

[treehugger1]

I would be extremely carefull!!! If you allow a lien, you have just signed away any current property or future property (holdings) to the lien. With a "first lien," they most likely have "first right" to collect including wage garnishment and/or bank account garnishment. Something does not sound correct here.

[jp2861]

I have a thread somewhere on here about the exact same lien idea. I really didn't understand the whole idea. I get the impression it's some sort of asset protection scheme. It might even be the same company because I was told the lien would be for $250k as well.

[uofaguy]

Thanks. I don't intend to go forward with this company, but was curious as to whether anyone had direct experience with this concept (or worse, had been taken by such a scheme).

JP2861, I'll have to re-search the forum - - I did not see anything else on this subject in my previous search. However, you are correct - the other way they market their plan is as an asset protection program. At this point if I only had assets to protect. Ha!

[HHM]

It's BS, plain and simple.