A financial crisis can leave you exposed to creditors, which may lead to a decision to file for bankruptcy. However, bankruptcy cannot always free you from debts and does not protect your assets from credit companies.
There are many circumstances in which the assets of individuals or businesses could be at risk. For individuals, and especially those with a particularly large asset portfolio, the greatest risk may be tax, while creditors or legal proceedings could also expose them to risk.
For businesses, assets may be sought by creditors, while larger corporations may find that they have fallen foul of competition laws or are in breach of the Insolvency Act.
Asset protection offers a number of legal vehicles and techniques to help to those who wish to ensure that their assets are shielded from unforeseen, or unforeseeable, circumstances.
We can advise on a range of asset protection options providing protection against creditors. For example, with an asset protection trust, the beneficiaries do not hold legal title to the assets, which protects assets from claims of creditors without concealment or tax evasion.
For more information, please contact us.
