New York Asset Protection & Bankruptcy Lawyer

Asset protection stands as a crucial consideration for business owners, serving to shield their hard-earned assets from potential threats like lawsuits, creditors, and bankruptcy. Conversely, sometimes businesses have no choice but to file for bankruptcy, whether to restructure their business to make it profitable once again or to liquidate it and free themselves of business-related debt. In either case, it’s paramount to have a skilled asset protection & bankruptcy lawyer in your corner who can effectively advocate for your best interests.

Asset Protection Strategies

At its core, asset protection involves the implementation of legal strategies to safeguard assets from future liabilities. Business assets, both tangible and intangible, can become targets in legal disputes, necessitating robust protection mechanisms. From real estate to intellectual property, the range of assets under threat underscores the importance of proactive protection measures.

Choosing the right legal structure plays a pivotal role in asset protection. Limited Liability Companies (LLCs) and S-corporations offer layers of protection by separating personal assets from business liabilities. Insurance policies, such as liability and professional indemnity insurance, provide an additional shield against potential legal claims. Moreover, incorporating contractual safeguards and establishing asset protection trusts can fortify a business’s defense against asset threats.

Trusts are another powerful tool in the arsenal of asset protection strategies. By placing assets within a trust, business owners can shield these resources from potential creditors and legal judgments. Trusts, especially those designed for asset protection, such as Domestic Asset Protection Trusts (DAPTs), can offer robust protection in the face of lawsuits or debts.

These legal arrangements allow for the transfer of asset ownership to the trust, managed by a trustee, thereby removing them from the direct reach of creditors. However, the effectiveness of trusts in asset protection can vary significantly based on the jurisdiction and specific setup of the trust, making it crucial to tailor these arrangements to the business owner’s unique situation and to comply with New York’s specific legal guidelines on trusts.

Business Bankruptcy Options

In the event that your business is either no longer profitable or facing financial hardship, bankruptcy may function as a useful tool to either discharge your debts or reorganize your business structure. That said, there are three types

• Chapter 7 Bankruptcy focuses on liquidation, offering a path for businesses to dissolve while addressing creditor claims.
• Chapter 11 Bankruptcy allows for business reorganization, providing a framework for companies to continue operations under a restructured debt plan.
• Chapter 13 Bankruptcy, though less common for businesses, applies to sole proprietors, facilitating debt repayment plans without full liquidation.

Contact an NYS Asset Protection & Business Bankruptcy Lawyer Today

Whether you’re looking to maximize your business’s profitability and protect your hard-earned assets or require guidance through the bankruptcy process, you can depend on a skilled New York business and technology lawyer from Technology General Counsel. Contact Technology General Counsel today.