The Importance of Asset Protection During a Recession
In times of recession, 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, lawsuits, divorce settlements, and claims. It is sometimes referred to as the debtor-creditor law. If you lose a lawsuit, you could lose your life savings or even everything you own.
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. Small businesses are equally vulnerable to attack, and a good asset protection lawyer can work to make the owners’ assets virtually bullet-proof from creditors.
Asset Protection Does Work
For example, let’s say a landscaper is involved in a negligence lawsuit. However, if all his assets or the majority of it is protected, for example 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 landscaper can follow.
Asset protection can be considered as a form of insurance from a serious lawsuit or claim. There are many different strategies a good asset protection lawyer can employ to protect your hard-earned assets from just about any risks. These strategies vary depending on how much risk is involved, how much wealth is involved, and what is happening at the time of the asset protection strategies. Best-case scenarios involve planning for attacks before they occur.
