How to Hide Money from Creditors
What is a Creditor?
A creditor is any opposing party in a legal battle. This could be a business partner, an individual, your spouse, a contractual plaintiff, large financial institution, a bankruptcy trust protector (trustee) or even a government agency. It is really any legal entity or person that decides to legally come after you.
What Can a Creditor Do If You Decide Not to Pay?
First off, there are very few instances where not paying your debt will get you thrown in jail. Second, most creditors can’t take money from your tax refunds or out of a bank account. The general rule for commercial creditors is that they must sue you in a court of law, win and then they can use the judgment against you to try and collect.
Of course there is a giant exception to all this and that is when you have taken out a loan against collateral such as a car or home. If you fail to pay a creditor like this, you will most likely have the collateral asset taken away.
How the Creditor May Collect a Judgment
Winning a judgment is the easy part…collecting is much more difficult. There are extreme cases, but most of the time, the creditor simply attaches a ‘judgment lien’ on any real estate or other business type assets. The creditor would then be able to collect if you were to sell or refinance this asset.
The Only Guaranteed Way to Prevent a Creditor from Taking Your Money
Developing, implementing and defending an asset protection plan is paramount. Placing your LLC or Trust in the proper jurisdiction with your assets placed inside this legal entity in a timely manner will protect you against any and all creditors when done correctly. A professional service should be a part of your asset protection plan as estate planning and asset protection across multiple jurisdictions can be tricky and catastrophic if done wrong. Your result will be an integrated asset protection plan with a few layers of defense that will stop any kind of creditor.
But Beware of Fraudulent Conveyance
One of the things you can do to land yourself in jail is called fraudulent conveyance. If convicted, you will not only lose your freedom, but your assets as well. In a nutshell, if you are about to file bankruptcy and decide on hiding money from creditors by quickly and quietly moving cash, property or other assets out of your name and into another to keep these assets from being part of the bankruptcy, you may get charged and convicted of Fraudulent Conveyance.
Get an Attorney for Good, Current Legal Advice…Then Call US
There are many things that can be done when your creditors begin to circle the wagons and having good legal advice is the best thing you can do for yourself. Every person’s situation is different and often quite complicated and going it alone can seem hopeless. There is always hope and after your attorney has given their best legal advice, call us and find out what other alternatives you might have. Most attorneys are not versed on offshore asset protection trusts, offshore LLCs or IBCs or even know where to start when picking the proper jurisdiction for your situation.
The Bottom Line
You owe money, you have creditors who want it and you want to know how to hide money from creditors. They have rights to try and collect it and you have rights to protect it. If you have at least $250,000US in assets and are interested in finding out how to protect it, It starts with a phone call, a free consultation, to find out your point ‘A’ and where you want to go.