Asset protection planning is usually the debtor's side in creditor and debtor law. While most creditors are concerned about recovery techniques and strategies, debtors are interested in techniques and strategies to protect their most valuable assets from potential creditors.
Given the law school adage that "the general rule doesn't usually apply," the following three rules should always be observed when trying to protect your business. You can hire a professional who tells you how to protect your business.
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1. Make a plan before the rights appear
You can do many things that are effective in protecting your assets before a liability or claim arises, but there are a number of things you can do. Additionally, the question of whether the claim arose earlier than non-professionals though – usually sooner than if a lawsuit arose or you received a letter
2. Delayed asset protection planning usually has the opposite effect
Doing asset protection planning after litigation will make matters worse. Think of it as catching the flu when you already have the flu, and the flu itself makes you even gloomier. A very common misconception is that judges can only reverse false referrals. A debtor who is late trying to plan is in a worse position than if he or she does nothing.
3. Asset protection planning is not a substitute for an insurance policy.
Asset protection planning can never be a substitute for professional insurance and liability but should complement employment insurance. The big myth is that an asset protection plan can always scare off applicants, and an asset protection plan doesn't pay court fees to defend a lawsuit.
Professional insurance also complements an asset protection plan as it can help debtors survive fraudulent charges. If at any time you get a lawsuit, make sure your insurance company is covered and then pay to settle it.