ASSET PROTECTION

Asset protection involves figuring out and applying a series of techniques that protect your assets from claims of future creditors. The techniques are designed to deter potential creditors from going after you, and frustrate them if they do, generally by making it difficult or impossible for future creditors to grab hold of your assets or collect judgment against you.

In cases where significant sums are involved, asset protection often includes setting up a series of trusts, partnerships and/or offshore entities to hold legal title to your assets. A future creditor who recognizes how difficult it would be to collect on any judgment, might decide not to pursue a claim, or be willing to settle for pennies on the dollar.

There is a very sharp dividing line between “legal” asset protection on the one hand, and actions to defraud creditors, which are criminal, on the other. For that reason, it is essential to have an attorney guide you through the process.