News

The Personal Poison Pill: Asset Protection in the Age of Distress

Thu Jun 19 2025

Jacobs P.C.

When your lenders are circling and your equity partners have turned into creditors, bankruptcy isn’t your only option.
Sometimes, the best defense is a well-timed legal offense — and that’s where Wayne Greenwald comes in.

In this episode of Confronting the Impossible, Leo Jacobs sits down with Wayne, Senior Counsel at Jacobs PC and expert in bankruptcy and creditor rights, to introduce a powerful tool for entrepreneurs under siege:

The Personal Poison Pill.

What Is the Personal Poison Pill?

Wayne calls it a Creditor Asset Protection Vehicle — a strategy where friendly creditors (like past partners, equity holders, or internal investors) convert into secured creditors by taking liens on your remaining valuable assets.

“We may not be able to save the business,” Wayne says.
“But we’ll preserve the entrepreneur — so they can rebuild.”

This isn’t a loophole. It’s a legal structure that creates protection against hostile creditors. Think UCCs, assignments, and mortgages — secured under state law and enforceable in both state and federal court.

When Judgment Hits, All Is Not Lost

Wayne breaks down a bold scenario:

  • You have a $200M judgment against you.
  • Your assets are worth $1B.
  • You line up $1B in new friendly creditors, who record their own liens after the hostile one.
  • You file structured confessions of judgment and even invoke marshaling doctrine to control asset liquidation.

What happens next? You’re no longer standing alone.

“Having a judgment is meaningless,” Wayne says.
“It’s only a right to try and collect. But if someone’s in front of you — you wait your turn.”

Better Before Than After

Most people wait until it’s too late. Wayne’s advice?

“Even if no one’s coming after you yet, do this now. It’s cheaper. Cleaner. More effective.”

The best poison pill is swallowed before the poison arrives.

🎧 Watch the full episode now for an essential playbook on surviving the unthinkable — without going bankrupt.

Because the price of greatness is responsibility, and the cost of inaction is everything you’ve built.

PODCAST - Confronting the Impossible with Leo Jacobs.

Leo Jacobs, Founder and CEO of Jacobs PC

Known for finding creative, expedient solutions to complex and high-profile cases, Leo excels in matters including distressed investment and asset management, real estate law, corporate law, dispute resolution, business divorces, negotiation, and more. Leo’s extensive expertise in debt and equity structures enables him to employ a full spectrum of legal tools to achieve swift, optimal results for clients. His practice, Jacobs P.C., bridges commercial litigation, corporate transactions, and financial rehabilitation, handling cases across federal, state, and bankruptcy courts, as well as administrative tribunals.

If you would like to join the podcast email requests to pr@jacobspc.com

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Facing challenges? Reach out to experienced professionals early, prepare for the unexpected, and always approach negotiations with clarity and strength.