Protecting Your Assets May be Your Most Important Decision

A lot of people consider asset protection an action for the rich. They consider Swiss bank accounts and tax havens and assume because they are working or middle class, protection is not for them. Not true! If you own assets, it is important to protect them regardless of their specific worth. Homeowners need to make an effort to protect the equity in their home, especially if they do not live in a state that automatically makes homes exempt from creditors. Cars and other personal property should also be considered and, you need to make sure these assets receive protection. Again, massive wealth does not dictate protection. An engagement ring requires protection and having inherited jewelry or artwork means you now own these assets. Furthermore, you may have investments in savings or stocks and bonds, all of which may be at risk should you be found liable in in a settlement. In many instances, a Cincinnati bankruptcy lawyer have asset protection knowledge. Cincinnati bankruptcy lawyers often have knowledge about how creditors behave and what will be at risk should you not protect your assets. Discuss your options for protection and your risk without it.

While some believe offshore investing is illegal, others understand this is one of the best ways in which to protect your assets. There are a number of ways in which to utilize offshore guards. While creditors will have little problem discovering your offshore accounts, any ruling in a U.S. court concerning these assets will not hold up. The investments are covered under the laws and regulations of the host country.

The only way the creditors would have a chance to access these assets is if they traveled to that country, try the case there, and gain similar judgment. It is unlikely a creditor will invest the time or money to accomplish this.

Your other option, often known as the poor man’s asset protection, is transferring your assets to another person. This can be a risky move, even when you trust the transferee. Should the relationship go astray, your assets go with it. Your enemy now owns all of your assets and this ownership will stand up in court. There is also a risk of the creditors proving that it was a fraudulent transfer.

This means it was done for the sole purpose of avoiding debt payments. While fraudulent transfer is legal, the court can simply ignore or undo the transfer leaving you with assets that can be taken. To avoid being accused of the action of fraudulent transer, prepare your protection plan well in advance of needing it.

Connor Sullivan recently worked with a Cincinnati bankruptcy lawyer while conducting research for a new article. He was very impressed with the client relations conducted by the Cincinnati bankruptcy lawyers while he spent time reviewing their work.