Are there any jurisidictions left that force the creditor to pay a deposit if the sue you?

[hernanday]

I saw that Nevis recently dropped that requirement. Curious if any other jurisdictions have such laws?

 

[GiGoGo]

Cook Islands: The judge asks you for a bond, depending on the case it can be up to 300k USD for 3 years in a local bank

 

[hernanday]

Cook Islands: The judge asks you for a bond, depending on the case it can be up to 300k USD for 3 years in a local bank

any source for this?

 

[GiGoGo]

The Cook Islands International Trusts Act 1984 (the ‘Act’), and specifically section 13B of the Act, is the reason Cook Islands asset protection trusts have such an unparalleled reputation and set the gold standard for asset protection trusts. If a creditor is looking to break open a trust and force a distribution from it, they need to satisfy section 13B. And section 13B is very hard to satisfy for a number of reasons. For a start, there’s the logistical side: because foreign judgments are not enforceable in the Cook Islands, the creditor needs to bring proceedings there. The Cook Islands is one of the most geographically remote nations on the planet, sitting a 10-hour flight from the US west coast and 4 hours from New Zealand on the other side of the Pacific. Bringing proceedings there entails serving the Cook Islands trustee company, and finding a local attorney (from a very small pool) who specialises in asset protection and is not prevented from acting because of previous dealings with one or more of the local trustee companies. And this side of things is due to get even harder soon, as an amendment to the Act is going through the Cook Islands Parliament which will require a bond of USD250,000 to be paid into court by any creditor bringing proceedings against a trust prior to those proceedings commencing

KEEPING ON TOP OF THE TRUST – A CASE STUDY - PART 3 - Southpac Group

In recent editions of INsight, we’ve met the Fletchers & the problems Nate Fletcher had encountered in relation to the Cook Islands trust.

southpacgroup.com