Case Studies

Why should you be concerned about asset protection? Lawsuit abuse has reached epic proportions in the United States. Business owners are among those at the top of the list for vulnerability. Below you will find real life examples followed by some example case studies of where an asset protection plan would have made all the difference.

*Videos are provided by www.iamlawsuitabuse.org

 

Employee Car Accident

You own a popular restaurant in the city that also does delivery. One night, there is an order to be delivered on the other side of town which is assigned to one of your new delivery guys, a clean-cut first year college student.

An hour later you learn your company vehicle has been in a bad accident where the driver and passenger of the other car were taken to hospital with critical injuries.

Several hours after the accident, you learn that your driver had marijuana in his system. Your insurance will not cover this type of accident. Who will?

Your personal assets will become part of the lawsuit unless you had an asset protection plan in place that put a protective wall between you and your business.

Bad Business Loan

Three years ago, you had a great idea to start a computer consulting business. You start your business out of your house and everything is going along great. In fact, you decide to rent some office space and some office equipment for the new up and coming business.

Unfortunately, you become ill and can’t keep your business going. The rent and office equipment lease haven’t been paid in three months. You get served with papers, to recoup the money and to go after your personal assets.

If you had formed a Corporation or an LLC when you started your business, then you would only be liable for the money invested into the business. The creditor couldn’t go after you personally, (unless of course you signed a personal guarantee).

Good Intentions

Your company sponsors an annual charity softball tournament to raise money for the local youth center. During the game a player slides into second base and breaks his leg. The next thing you know you're being sued for $100,000 to cover his medical expenses and his pain and suffering.

Bitter Divorce

Ten years ago, you married the man of your dreams. You shared three happy years of marriage before starting a family with two children. Also, during this time you were successful in building your sports equipment business into a successful retail chain.

In year eight, your marriage starts to fall apart. Within a year and a half, after some bitter disputes, you’re able to work out custody and visitation rights with the kids. However, your ex-husband has also decided to sue you for three million dollars and alimony. You are not made of money and the business carries a large over-head, what are you going to do?  

How are you going to prove that you don’t have this kind of money? If a majority of your assets really belong to a Corporation then those are assets which can not be touched to fulfill a personal obligation.

Don't let yourself become another asset protection case study. Contact us today about how to get started with your asset protection plan.

All that we do is submitted and performed with the understanding that we are not engaged in rendering legal, accounting or other such professional service.  If legal advice or other expert assistance is required, the services of a professional should be sought.