Winter Park Asset Protection Attorneys

In simple terms, asset protection is a part of financial planning that strategizes ways to protect your financial assets from creditors or probate after death. Individuals and businesses can participate in asset protection, but it is beneficial for those who wish to protect their financial wellbeing.

Asset protection can also help you decide whether you should pursue bankruptcy or an alternative if you are in a particularly rough financial position. Creditors often scour your finances for opportunities to cash in on debtors. Depending on the value and number of assets in your possession, bankruptcy may be a more favorable option for debt relief.

How Does Asset Protection Work?

The first step in the asset protection process is identifying the debtor. If you are the debtor, you will need to evaluate all financial entanglements that you might have. This can include medical bills, loans, or child support. These things can affect the value of your assets over time, so it is important to get an overview of what you may owe.

Once you identify the debtor, you will need to identify the creditor. Creditors come in all shapes and sizes, from big banks to high-interest lenders. 

You must understand who you owe money to so you can be sure that whatever measures you take to shield your assets are applicable. In addition, different creditors have varying power over asset seizure, especially if one of your lenders is the government.

Taking a deep dive into the nature of the claim is also a critical step in the asset protection process. Lending agreements often have unique claims and limitations that could affect your ability to protect your assets while under the contract. For example, dischargeable claims can be written off by the court, but other claims may be locked in.

Lastly, you will need to determine the nature of the asset. Many assets are exempt from creditor claims, but others may be susceptible to creditors. Homestead exemptions, for example, protect homeowners from foreclosure as a form of debt repayment. However, while your home may be exempt, the creditor could still claim your vehicle. Therefore, always keep track of exemptions that may apply to you.

Once you have completed all of these steps, you can begin to take legal action to protect them from creditors or probate court. Trusts are a common asset protection strategy that could be a viable option for you. However, not all asset strategies are created equal, so consult an attorney to determine what options may be right for you.