Learn How Uncle Sam Works!
In commercial terms, the world revolves around insolvency. Insolvency is the process whereby one’s entire patrimony (i.e. the totality of one’s assets) is liquidated in order to satisfy his total debts that have grown beyond his means.
Insolvency procedures are problematic in that they mean liquidation of personal assets such as one’s home and one’s car. Unfortunately there are few ways to avoid insolvency, which most normally occurs through poor judgement or ‘bad luck’.
Fortunately, there are numerous ways in which the potential implications of insolvency procedures can be minimized to prevent loss of assets. For the lay-man, this can involve certain minor legal procedures which could ultimately save a fortune. For creditors, this can be particularly bad news. In this article we will look at entirely legal ways in which you can potentially avoid losing assets in insolvency procedures.
If you are running a small business, or likely to do so in the next decade, you must act on the following immediately to protect your assets. Alternatively, if you foresee yourself amassing significant unsecured debt in the coming years, you should also act similarly.
Allowing a ten year margin, which might seem a lot, will prevent any challenges on sequestration and ensure that the assets you have ‘alienated’ no longer form part of your estate. The alienation ensures that the assets from which you will still benefit cannot be received by your creditors in consideration for any debts you accrue.