BANKRUPTCY AS ASSET PROTECTION
Bankruptcy is usually viewed or presented as debt reduction, debt elimination or financial reorganization and it is those things. However, bankruptcy is also an asset protection strategy and should be viewed and presented as such.
Asset protection from a legal standpoint is usually thought of as estate planning, wills, trusts and family business formations. Those are important tools and work best when things are going well. However, things don’t always go well; at some time during your life, there may be times of financial desperation.
It is during these times that bankruptcy as asset protection becomes clear. Good Bankruptcy attorneys can protect assets by helping you select the proper chapter of the bankruptcy code, and the best way to implement and structure the kind of bankruptcy you need. When things are not going well, doing a bankruptcy case properly can protect your home, your car, your bank account, your paycheck and your retirement savings.
The real food for thought here is even when things are going good and your attorney is helping you protect your assets via estate planning, wills, trusts or business formations, utilizing knowledge of bankruptcy laws at that time – in case things go bad in the future – can provide stronger protection over your life. Proper bankruptcy planning during good times could mean not having to file bankruptcy during the bad times.
When you are serious about legal asset protection, be sure that your lawyer has detailed knowledge of legal tools for protection during bad times as well as good. Properly structuring your asset protection strategies by taking bankruptcy law into account is smart and may pay off big if your financial world goes bad.
© David G. Hicks, Attorney at Law