The Importance of Asset Protection During a Recession

Monday, December 7th, 2009

In times of recession, where a chain reaction of bankruptcy filings is imminent, it is very wise to have a form of asset protection. Asset protection is the process of protecting a personal or business property from risks such as bankruptcy, law suits, divorce settlements, and claims. It is sometimes referred to as the debtor-creditor law.

Countless law suits ranging from malpractice to negligence can cause a severe financial instability to a person or a company. If an entity or a person looses from a lawsuit could lose their life savings or even their entire fortune.

Even giant corporations and conglomerates are not exempted from the perils of bankruptcy. More often than not they are the first to go down in times of financial crisis and recession. Only those who are wise enough to safeguard their wealth are left standing after a heavy financial blow.

Asset Protection Does Work

For example, let’s say a doctor is involved in a medical malpractice lawsuit. However, if all his assets or majority of it is protected, let’s say via an integrated estate planning trust (IEPT) his counsel can inform his plaintiff’s counsel that the defendant’s assets are protected. Once the plaintiff’s counsel confirms this a settlement in favor of the doctor will follow.

Asset protection can be considered as a form of insurance from a serious law suit or claim. Realtors earn a vast amount of wealth from selling real estate property. They can go from riches to ruins if they are over confident. Putting your wealth in a savings account or investing it in real estate or stocks are good options. Just don’t forget to have a contingency plan such as an asset protection plan.

Land of the Free

Freedom has given us so much that it can be exploited to attack an individual or a company. If these defendants’ assets are left unprotected they can kiss their hard earned fortune goodbye. A lot of things are taken for granted but there are things or events that can happen unexpectedly and all of us know this. Question is when, and are you prepared for it?

America is a free country anyone can file a legal claim or lawsuit against anybody. Realtors, actors, authors, employees, employers, ordinary citizens - are all vulnerable from lawsuits or and if you are a big-time businessman you may want to consider asset protection in your priority list.

Tags: Asset Protection, creditor-debtor law
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