PROTECTING YOUR ASSETS
Seizure
of Assets
When
debt, including credit card
debt, begins to pile up all around
you, and there seems to be no way of paying it all off or even down,
you may find yourself confronted by the possibility that your creditors
will take you to court. They will seize your assets in an attempt to
recoup their losses in dealing with you, including all savings and even
property. Thanks to an out-of-control debt you could quickly find
yourself stripped of everything of value you once possessed.
Thankfully,
in this
event, there are ways of safeguarding some, if not
all of your assets. However, be careful when attempting any of these
that you do not cross the line between what is allowed under the law
and what is not. Talk to a credit
counselor and an accountant before
setting to accomplishing any of these methods, and get advice on your
best bet to keeping some of your money out of
the hands of your creditors.
What
is the Law in Regard to Credit Card Debt
First,
learn what assets are not seizable by law. This normally
includes pensions, insurance policies and annuities. By law, your
creditors must leave these
untouched, so they’ll be
safe. Still, there may be
other assets which can remain untouched, so do your research and find
out.
Attempt
to Negotiate
Next,
attempt a credit card debt
negotiation settlement or some form
of last-ditch payment plan with
your creditors. Remember that, all appearances to the contrary, they
are not your enemies.
Like you, they’re
simply trying to get
what’s theirs by law. Contacting them before they contact you
is always a good way to set the ball rolling. If they have to go to
court, you stand to lose a lot.
Transfer
Control of Assets
The easiest way, in theory, to protect endangered assets if it reaches
that point is to transfer them into the control of either a spouse or
your children, or even a sibling as a donation or gift. This will
prevent them from being seized in most cases, as your creditors can
only take from your personal assets. Be warned though, this is one of
those iffy propositions. Sometimes its legal, other times it might not be. Consult
with an expert before you go through with it.
Marital Property Agreement
Entering
into a marital property
agreement is another form of the
above, in which you transfer partial control of all assets to your
spouse. In most cases this will protect half of what you own from being
seized.
Incorporate
Setting up a corporation is another good way of shuffling
assets out of a creditor’s line of sight. Again, always check
with a financial expert before doing anything like this, both for your
own security as well as to ensure that it will actually accomplish what
you want it to.
Transfering
to a Trust
Transferring
your property assets to
a trust is a good way of keeping
those assets in particular away from your creditors. Much like a
marital property agreement,
it will keep your home
from being repossessed.
It
makes good business
sense to protect as much of your total assets as
possible from potential creditors, and, if you are going to do it, do
it prior to any legal proceedings, and with the help of expert
financial managers and accountants.