Unfortunately, for many people their interest in asset protection is simply too late. If you wait until you have problems, it will probably be too late.
To be effective, asset protection should be done before you get into financial trouble and especially before you enter into any personal guarantees, such as guarantee to a lender for a loan.
Engage in asset protection planning, before:
- Being Sued or Getting Involved in Litigation
- Filling for Bankruptcy
- Going Through a Divorce
- Being Foreclosed Upon
- Personal Adverse Economic Conditions
- Attempting to Put Assets Out of Reach of Creditors
If you are in financial trouble now and just starting to think about asset protection, you may be too late.
Is it too late for me?
If you suspect that you might be sued, but you have not yet been sued or even received a demand letter from the plaintiff’s attorney, you are not too late to do asset protection planning if the claim has not already arisen. A claim is a circumstance or event that could give rise to liability.
The fraudulent transfer and fraudulent conversion laws do not look at lawsuits or judgments, but instead look at when a claim arose.
What is the time-frame for moving assets?
Any transfer or conversion that was made within the last four years might be targeted by a creditor to be set aside. The Statute of Limitations for fraudulent transfers and conversions is usually around four years, although each state will have its own variations.
Certain laws will nullify gifts and transactions that are meant to put assets out of the reach of creditors, and will limit a debtor’s attempts to put their money into exempt assets.
What will happen if I attempt to hide assets after a claim has arisen?
There can be serious consequences if you attempt to hide assets after a claim has arisen. If you engage in asset protection planning after a significant claim arises or after you have become illiquid, then not only will any transfers that you make be at risk of being deemed to be fraudulent transfers, but you also may risk a denial of discharge if you later find yourself in bankruptcy, voluntary or involuntary.
One thing is certain if you are in trouble or financially slipping, the more quickly that you speak with an experienced asset protection specialist, the better off you will be. In addition to bankruptcy counsel, some attorneys specialize in non-bankruptcy “workouts” with creditors and “wind-downs” of distressed businesses.
Mr. Al Golden specializes in providing asset protection planning, litigation support, expert witness, forensic accounting, income and estate taxation, comprehensive business valuation, complete CFO and controller services. He is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners. Mr. Golden is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners.
A.M. Golden Accountancy Corporation offers a free initial consultation – To speak with Mr. Golden immediately, please call his direct line by dialing (760) 444-1913. If you’d prefer, you may also send an email: email@example.com
What is Forensic Accounting?
December 22, 2015
When is it Too Late to Protect Assets?
May 4, 2016
How to Decrease Your Taxes with Charitable Tax Deductions
December 26, 2014