Here's Why You Need An Asset Protection Attorney For Your Business

17 October 2022
 Categories: Law, Blog


In law, asset protection involves strategies to protect your business from lawsuits and legal sanctions that may lead to the loss of your assets. On the other hand, asset protection attorneys are lawyers who help find legal ways to protect your property from sanctions, liabilities, lawsuits, and bankruptcy. The following are some key reasons you should hire an asset protection attorney

They provide legal advice when forming and running a business 

Asset protection attorneys are experts in business law and will give you sound legal advice during the formation of a company and its daily operations. Before registering your business, they guide you on choosing the right category, i.e., sole proprietorship, general partnership, limited liability company (LLC), or corporation. For instance, a sole proprietorship will be ideal for a small business enterprise due to less stringent illegal procedures and licensing regulations when forming them. Conversely, registering a business as an LLC or corporation would be ideal for a big company to protect you from huge liabilities such as creditors' debts. Additionally, asset protection attorneys help you adhere to consumer protection laws and scrutinize contracts and business deals, among other things, to protect your business from legal sanctions. 

They represent you in court 

Cases related to real estate, property rights, business deals, and trusts are always complex because of the laws, procedures, terminologies, and voluminous documents involved. Attempting to file or represent yourself in these cases may result in losing your assets, even in situations where you have a strong claim or defense. Attorneys have sufficient knowledge and experience in asset protection laws and help you protect your property in a lawsuit. For instance, they scrutinize various state laws and offshore jurisdictions and develop strategies to prevent creditors from accessing your assets. In the event of a court case, they'll simply argue that the creditors have no legal jurisdiction over the property and the court's hands are tied over the matter. Such legal limitations may not be familiar to you, putting you in a vulnerable situation in case of a lawsuit. 

They help seek alternative dispute resolution 

Lawsuits from creditors seeking to recover their money can have detrimental economic effects on your assets and business operations. They put you at risk of losing critical assets such as business premises, machinery, and vehicles. The cases also take time to complete, resulting in substantial legal fees and a halt to business operations. To avoid such risks, an asset protection attorney can help seek alternative dispute resolution mechanisms with creditors to protect everyone's interest without needing a lawsuit. For example, they help draft an integrity agreement where disputes follow progressive communication, negotiation, mediation, and arbitration stages for amicability.