Our assets are the best part of our financial equation but they are at risk of being taken away at every turn. These assets are referred to at times as “liability assets” for they tend to attract risks, the consequences of which you should be protected from with insurance.

If one of your liability assets such as your vehicle or home were to be involved in an incident where someone was hurt it would open you up to a lawsuit. The lawsuit would accuse your property (you) of being negligent and seek for a payout to the injured to cover damages.

The only way to protect yourself from such a risk is to make sure that your liability assets are covered under liability insurance.

Alternatively when you are a small business owner you may find yourself responsible in the event that an employee were to have an accident while at work. No matter how safe your employees behave on the job there is always the chance an accident could occur. If you have not insured your business you would responsible for any payouts.

Office accidents can really be anything. There is always a risk of equipment malfunctioning or a simple trip and fall occurring.

You don’t want to find yourself responsible for paying damages with your personal finances. Liability insurance would protect you from that.

Aside from insurance, another asset protection strategy is to form family limited partnerships and limited liability companies. Setting up a corporation or a company or partnership that is limited liability (LLC) can protect your personal assets.

Chapter 13 bankruptcy can actually help you keep your assets from being taken away. The more you know about the law the better you can be protected.

Under chapter 13, the procedure for foreclosure can be stopped, and payments of loans and mortgages can be rescheduled. Payments can be made over the 3-5-year period granted you by chapter 13. What’s more, these payments are lower than what you used to pay your creditors.

You can use chapter 13 bankruptcy as another method to insure your assets are safe.

Learn more about foreclosure. Stop by Chang & Carlin’s site where you can find out all about chapter 13 bankruptcy and what it can do for you.

categories: attorney, bankruptcy, chapter 13, foreclosure, liability, insurance, assets