If you live in New York and are looking to hide assets from creditors in a legal manner, you are really aiming to “protect” your assets in a way that is legally above reproach. In a highly litigious society like America, asset protection is important for everyone. In the event of business disputes, bankruptcy, or divorce litigation, creditors and debt collectors may pursue access to your personal assets. We want to protect our belongings and pass it on to our loved ones. Asset protection planning is the best legal tactic to ensure assets are protected against creditors through thick and thin. By shielding your assets in a trust, your valuables are protected against creditors, providing a more favorable outcome for you. Inna Fershteyn Esq has 20+ years of experience helping clients protect their assets, giving many families a sense of security. All work is completed in a responsible, legally sound manner that works within the law.
So, if you are fully aware that your assets are currently not shielded from creditors, you should consider hiring an attorney who specializes in asset protection planning. To set up an
appointment, please contact Inna Fershteyn at (718) 333-2394.
What Assets Creditors Can Come After
Creditors can and will come after you if they see fit. They can be quite aggressive coming after your:
● Bank accounts
● Properties: land, home,, office, commercial buildings
● Businesses: LLC (Limited Liability Company)
● Personal residence
● Investment properties: real estate with the purpose of renting out
● Investment accounts: bank securities
What Risks Can You Face?
LLCs are not entirely foolproof from blame. A judge can hold the owner(s) of an LLC personally responsible if they directly injure another individual or entity. Additionally, when a creditor pursues access to your assets, they may attempt (and succeed) to freeze your bank account. The creditor can also demand a lien on a property you own until all debts are paid. Lastly, creditors may demand payment in another form: garnishing wages. In New York, this method allows creditors to take up to 10% of your gross wage or 25% of disposable income. However, individuals that owe money, but make less than 30 times the minimum wage, are exempt from this method of debt collection.
Why You Need to Shield Assets From Creditors
If you are in a profession where malpractice lawsuits are common, it is pertinent to have some form of asset protection. Additionally, small business owners should also take the initiative to protect their assets in case they ever file bankruptcy. Insurance for your personal or business assets is not enough. Insurance may only be able to cover a small portion of what you could be sued for. Lastly, any individual that owes a significant amount of money to a creditor, may be in danger if their assets are not protected. An asset protection plan will ensure that your money is protected from creditors.
New York Laws – The steps Creditors Take Against You In New York
1) creditor files a lawsuit
2) court hearing on the case
3) possible judgement award in favor of the creditor
4) the debt collector contacts you directly about a debt you owe
5) a debt collector must give information about your consumer rights, the identity of the original creditor, an itemized list of your debt, and statute of limitations. The debt collector must provide all of the collection activities not allowed by the federal Fair Debt Collection Practices Act (FDCPA), the amount of debt the original creditor was sent to collect, amount of interest since the debt was sent to be collected, amount of fees and charges, and any payments you have made since debt was sent to be collected.
The Top 2 Ways to Protect Your Assets From Creditors
The most popular and effective way to protect assets from creditors in New York is to create an irrevocable trust. An Irrevocable trust, unlike a revocable trust, cannot be changed or removed once it is established. When establishing this trust, you agree to relinquish control of the included assets. Control over the assets is then transferred to a trustee, the person who is legally responsible for managing the trust. If a creditor files a lawsuit, the assets transferred to the trust will no longer be considered theirs. Therefore, if the creditor wins the lawsuit, an irrevocable trust will provide the highest degree of protection against them.
Foreign Asset Protection Trust
This trust is also known as an offshore trust and provides effective protection over an individual’s assets. As a trust that is established outside of the U.S., it entails both advantages
and disadvantages. First, it offers strict protection over the included assets. Second, since the trust is drafted abroad, its assets are governed by the laws of the territory in which it was drafted. Therefore, they are protected against U.S. court–ordered seizure. However, this means that the individual must take the time to thoroughly inform themselves of the foreign territory’s laws and regulations. Additionally, foreign asset protection trusts may take more time and are more expensive to create. They are also vulnerable to any economic or political downfall that may occur on the territory in which they were established.
Contact Us – Asset Protection Planning
The Law Office of Inna Fershteyn has a multitude of experience helping clients transfer assets into a trust to protect from creditors. To learn more about the importance of asset protection, how it serves your best interests, and which trust is the best option for you, contact us at (718) 333–2394.
We provide representation to clients in the Five Boroughs of New York City (Brooklyn, Bronx, Queens, Staten Island, and Manhattan), Long Island, New York State, and New Jersey.
How do creditors find your assets?
Creditors may find your assets if they have access to information with your address. Additionally, while a creditor cannot easily access your bank information, they can serve the bank with a writ of garnishment. In response, the bank must freeze the individual’s assets and/or state the account’s balance.
Is Cryptocurrency subject to seizure too?
Cryptocurrency accounts detail valuable information that can be traced back to the owner’s financial and personal information. As a result, Cryptocurrency is also vulnerable to creditor seizure.
Is it legal to hide assets?
Intentionally lying about the amount of total assets an individual owns during an investigation, court case, or when questioned is illegal. However, it is possible to legally hide, and protect, assets in an irrevocable trust, Offshore bank account, retirement accounts, and by transferring assets to another entity.
Is Offshore asset protection a solution?
Offshore asset protection, while not the best guaranteed approach because it is governed by the laws of the territory on which it is established, offers a strict degree of asset protection against creditors.
What do I need to look for in an asset protection attorney who specializes in protecting assets from creditors?
The best asset protection attorney has experience establishing irrevocable trusts and transferring assets to other entities. The best attorney not only has experience doing this time and time again, but does it successfully while simultaneously listening to client needs and answering important questions at all times.
Can creditors take my Social Security checks?
Initially, creditors cannot take Social Security checks without a settlement if you receive them as a direct deposit. However, your Social Security checks are not as thoroughly protected if you do not receive them through direct deposit. Additionally, if a case is settled in favor of a debt collector, they may issue a court order for your bank to transfer money from your account.
Can Creditors take my home?
Most creditors will not force you to sell your home to obtain money for your debts. Instead, they will wait for you to sell it on your own terms or until you refinance your home to collect owed money.
The best method to protect assets (or “hide” assets) from creditors is to be proactive, to have a plan, and to put these estate and tax planning tools into effect before a lawsuit or issue arises.