When Should You Consult an Asset Protection Lawyer?

An unscrupulous debt collector or a baseless debt collection lawsuit could cause financial hardship for almost anyone. In Massachusetts, you can take specific steps in advance to protect your assets, but you’ll need the assistance and advice of a Plymouth asset protection attorney.

If you own a home in Massachusetts, a business, or anything of value, you could become the target of a dubious debt collector or a specious lawsuit at any time, so it is essential to implement an effective asset protection strategy as soon as possible. This can’t be stressed strongly enough.

If you take action to protect your assets and properties after a lawsuit has been filed, a court will probably void that action, and your assets will remain at risk. It is vital to act promptly. What risks do your assets face, and what measures can you take in advance to protect against those risks?

What’s at Stake?

Protecting your assets is essential to establishing financial security for yourself and those you love. When you understand what threatens your financial security and the strategies that can counter those threats, you can build a strong legal shield against creditors and potential lawsuits.

By reorganizing your finances, asset protection shields your assets and properties from lawsuits and other collection activities. In some cases, asset protection changes the legal ownership of your assets and properties so that others may not have access to what is yours.

Navigating the complexities of asset protection requires thoughtful planning with the advice and insights of an experienced asset protection attorney. The right combination of asset protection tools and legal strategies can give you confidence and peace of mind about the future.

What Risks Do You Face?

Several situations could unexpectedly pose a threat to your assets and properties and cause genuine financial hardship. Those situations and prospective threats include, but are not limited to:

  1. Business debts: In some cases, business owners may be held personally liable for the debts of their businesses. A Plymouth creditor harassment lawyer can help you establish substantial legal barriers between your business and personal assets.
  2. Aggressive debt collectors: Delinquent medical bills, credit card payments, or personal loans can trigger aggressive debt collection activity. For example, a debt collector may ask a Massachusetts court for an order to garnish your earnings.
  3. Lawsuits: A creditor could sue you for a debt, another driver could sue you after a car crash, or someone injured (or allegedly injured) at your home or business could sue for property liability. A civil court could find you liable and order you to pay the claim.

What Asset Protection Tools and Strategies Are Available to You?

A variety of asset protection strategies and tools are available in Massachusetts. A Plymouth asset protection attorney can help you determine which tools and strategies are right for you and help you implement an effective strategy for safeguarding your properties and assets:

  1. Insurance: To protect your assets, purchasing liability insurance – an umbrella policy, for example – is almost always the first step to take. Cars and homes must be insured. Insurance can protect your assets, at least temporarily, and help you pay legal fees.
  2. LLCs: A limited liability company (LLC) gives your assets more protection. You keep personal and business assets distinct by setting up an LLC for your investment properties or business. An LLC usually shields your personal assets if your business is sued.
  3. Trusts: An irrevocable trust is a strong asset protection tool. You cede legal ownership of your assets when you move them to an irrevocable trust, but a trust usually shields assets from creditors. Your lawyer can set up a trust for you and explain its tax ramifications.
  4. Retirement plans: Usually, the courts do not allow creditors to access employer-sponsored 401(k) accounts or IRAs. There are exceptions, however, if you owe past-due alimony payments or back taxes.
  5. Titling strategies: Joint property ownership (tenancy by the entirety) is typically reserved for married couples and usually protects their jointly-owned properties from creditors when only one spouse owes the debt.

When Should You Consider Bankruptcy?

If you’re already experiencing financial hardship and you cannot pay your debts, bankruptcy may or may not be your solution. Bankruptcy is a last resort that entails some harsh consequences. It’s not for everyone who struggles to pay their debts. However, bankruptcy:

  1. allows you to protect specified, exempted property
  2. stops foreclosures, repossessions, wage garnishments, and creditor harassment
  3. erases most or all of your debts to give you a fresh financial start

In some cases, bankruptcy is a person’s only practical solution. In other circumstances, however, your lawyer may discuss your alternatives to bankruptcy.

What Else Should You Know About Protecting Your Assets?

Everyone’s financial circumstances differ, so no “one-size-fits-all” asset protection strategy exists. A Plymouth creditor harassment lawyer can offer personalized advice and help you take the practical asset protection measures most appropriate in your situation.

Of course, your specific asset protection requirements will depend on your assets, properties, and the size and complexity of your estate. Asset protection is the way to ensure that a lawsuit or a debt collector does not take everything you own.

It’s never too early to consult a Massachusetts asset protection attorney about protecting what is yours. At Benner Law, we help Massachusetts families prepare for the future.

Let Benner Law Help You Protect What is Yours

Finding the right lawyer to help you implement an effective asset protection strategy doesn’t require a widespread search. A Massachusetts debt relief attorney at Benner Law can prepare the long-term asset protection plan you need.

Throughout Massachusetts, Benner Law assists clients who are overwhelmed by their debts. We provide comprehensive debt relief services and help you regain control of your finances. For your convenience, our law offices are located across the state.

If you can’t pay your debts, if a creditor is garnishing your wages, or if you are considering bankruptcy, talk to us as quickly as possible. Your first strategy session with the team at Benner Law is free. You can schedule that strategy session now by calling us at 774-228-7338.