Bankruptcy Technique: Asset Protection Planning
One of the techniques in bankruptcy is asset protection planning. It is about the borrower’s side of the lender-debtor law. It is best for the individuals who worry the most about protecting their assets because those are the individuals are the most likely to get sued. Some of them are real estate investors but average individuals usually get caught up in tough situations. Moreno valley attorney experts are a great help for those who badly need property protection through filing for bankruptcy.
Some creditors are too concerned about the techniques and strategies of debt collection. On the other side, debtors’ attention is drawn to the techniques and strategies for keeping their most precious properties from their creditors. One good thing about asset protection plan is it’s not only for property protection but also about securing anyone not to be dragged in jail for contempt.
Here are some of the important things to know shared by bankruptcy attorneys for asset protection:
Plan ahead before the claim ascends:
There are a lot of things to consider to effectively protect the assets before a liability or claim ascends. Keep in mind that everything cannot be undone after a claim rises under fraudulent transfer law. The claim ascends earlier than a person might think. It is normally earlier than when a process server or a demand letter shows up at the door.
Backfires of late planning:
The situation might become worse if the asset protection plan is done after a claim arises. One common misconception is that the only matter a judge can do is to undo a fraudulent transfer, leaving a borrower who planned late is as bad as he had done nothing. On the contrary, the debtor is liable for creditor’s lawyer fees, and the borrower can lose the hope of getting dismissed in bankruptcy.
For more information, visit Moreno law firm to address your bankruptcy concerns. Call us now to know more about asset protection planning and other legal advice.