Asset Protection

Frankly, even referring to the protection of your assets from creditors is a questionable practice, since the law in the United States, starting all the way back in Britain before we were even a country, maintains the myth that your assets belong to your creditors. The whole bankruptcy system is based on that belief. So are all the “fraud on creditor” statutes in both Federal and State law.

Unfortunately, we live in a world where some, might I say unscrupulous, attorneys and greedy clients make a lot of money, creating situations that jeopardize your assets. Most business owners know about sexual harassment allegations and are careful to avoid those situations. Fewer know about commercial defamation, interference with an advantageous business relationship (stealing customers) or unfair business practice. All of these allegations hold the potential to bury your business and strip you of your assets.

If you own property, are you sure your insurance will cover the rape of someone on your property who is not a tenant? Who is a tenant? The employee of a tenant? If you loan an employee your personal auto/truck that is not insured by the business and they hit someone, are you covered?

In this section we discuss some of the legal methods that are used to cut down your exposure to these and even more frivolous types of claims. While none of them are one hundred percent guaranteed to be effective all the time, they sure give you some teeth when bargaining for a settlement.