Is This Crazy?

Post Reply
 
User avatar
EarthWindandFire
Member
Posts: 1594
Joined: Sat. Dec. 18, 2010 12:02 pm
Location: Connecticut
Hot Air Coal Stoker Furnace: Leisure Line Lil' Heater.
Other Heating: Oil Furnace and Kerosene Heaters.

Post by EarthWindandFire » Mon. Feb. 17, 2014 10:10 am

I'm trying to start a business. I will have to go into debt very heavily and borrow money from investors and a bank. What I want to prevent is losing my house if I default.

Even though this is a public forum, I can ask or say crazy things and remain fairly anonymous. So here's my question!

Is it a crazy thought to get divorced to protect my assets from bank seizure.?? :oops:


 
User avatar
Carbon12
Member
Posts: 2226
Joined: Tue. Oct. 11, 2011 6:53 pm
Location: Harrisburg, PA
Stoker Coal Boiler: Keystoker KA-6
Coal Size/Type: Rice/Anthracite
Other Heating: Heat Pump/Forced Hot Air Oil Furnace

Post by Carbon12 » Mon. Feb. 17, 2014 10:14 am

If you completely trust her,....only slightly crazy. Investigate a L.L.C.

 
Wanna Bee
Member
Posts: 318
Joined: Thu. Jan. 17, 2013 5:41 pm
Location: You wouldn't believe me if I told ya! Virginville PA

Post by Wanna Bee » Mon. Feb. 17, 2014 10:35 am

I'd try to get unsecured financing before anything. I never used my home as collateral on any of my business loans. I always figured even if everything else feel apart I would always have a place to lay my head.

Besides needing to have some kind of tax filing status. LLC's and S corps only give you very limited protection.

 
User avatar
Flyer5
Member
Posts: 10376
Joined: Sun. Oct. 21, 2007 4:23 pm
Location: Montrose PA
Stoker Coal Boiler: Leisure Line WL110
Hot Air Coal Stoker Stove: Leisure Line Pioneer
Contact:

Post by Flyer5 » Mon. Feb. 17, 2014 10:36 am

EarthWindandFire wrote:I'm trying to start a business. I will have to go into debt very heavily and borrow money from investors and a bank. What I want to prevent is losing my house if I default.

Even though this is a public forum, I can ask or say crazy things and remain fairly anonymous. So here's my question!

Is it a crazy thought to get divorced to protect my assets from bank seizure.?? :oops:
Form a corp. Banks may still expect your personal property as collateral. When we bought LL we leveraged just about every asset we had. Makes ya feel even better when you hear of the deadbeats collecting off the system and feeling entitled never risking anything.

 
franco b
Site Moderator
Posts: 11416
Joined: Wed. Nov. 05, 2008 5:11 pm
Location: Kent CT
Hand Fed Coal Stove: V ermont Castings 2310, Franco Belge 262
Baseburners & Antiques: Glenwood Modern Oak 114
Coal Size/Type: nut and pea

Post by franco b » Mon. Feb. 17, 2014 10:36 am

If you incorporate I believe only the assets of the corporation are at risk.

Consult a lawyer.

 
User avatar
Flyer5
Member
Posts: 10376
Joined: Sun. Oct. 21, 2007 4:23 pm
Location: Montrose PA
Stoker Coal Boiler: Leisure Line WL110
Hot Air Coal Stoker Stove: Leisure Line Pioneer
Contact:

Post by Flyer5 » Mon. Feb. 17, 2014 10:38 am

franco b wrote:If you incorporate I believe only the assets of the corporation are at risk.

Consult a lawyer.
Not always true.

P.S. Good luck with what ever you are looking to do.

 
User avatar
lsayre
Member
Posts: 21781
Joined: Wed. Nov. 23, 2005 9:17 pm
Location: Ohio
Stoker Coal Boiler: AHS S130 Coal Gun
Coal Size/Type: Lehigh Anthracite Pea
Other Heating: Resistance Boiler (13.5 KW), ComfortMax 75

Post by lsayre » Mon. Feb. 17, 2014 10:39 am

Look up LegalZoom.com

A 'LLC' is what you need here. Not a divorce.


 
User avatar
michaelanthony
Member
Posts: 4550
Joined: Sat. Nov. 22, 2008 10:42 pm
Location: millinocket,me.
Hand Fed Coal Stove: Vigilant 2310, gold marc box stove
Hand Fed Coal Furnace: Gold Marc Independence
Baseburners & Antiques: Home Sparkle 12
Coal Size/Type: 'nut
Other Heating: Fujitsu mini split, FHA oil furnace

Post by michaelanthony » Mon. Feb. 17, 2014 10:52 am

[quote="EarthWindandFire"]I'm trying to start a business. I will have to go into debt very heavily and borrow money from investors and a bank. What I want to prevent is losing my house if I default.

Even though this is a public forum, I can ask or say crazy things and remain fairly anonymous. So here's my question!

Is it a crazy thought to get [i][u][b]divorced[/b][/u][/i] to protect my assets from bank seizure.?? :oops:[/quote]

I think I know where you're going, my ex-mother in law divorced her husband (on paper) when he was first thought to have dementia in order to keep her house and put him in a nursing home, of course there was a strict time frame involved that precluded.

 
User avatar
freetown fred
Member
Posts: 30293
Joined: Thu. Dec. 31, 2009 12:33 pm
Location: Freetown,NY 13803
Hand Fed Coal Stove: HITZER 50-93
Coal Size/Type: BLASCHAK Nut

Post by freetown fred » Mon. Feb. 17, 2014 10:56 am

With the LLC--only the company & it's assets can be gone after--nothing personal property wise. As far as divorce, you'd be amazed at how ya can get screwed on that one--yeah, yeah, I know, the wife is a real sweetheart & your circumstances would be different! :clap: toothy

 
User avatar
davidmcbeth3
Member
Posts: 8505
Joined: Sun. Jun. 14, 2009 2:31 pm
Coal Size/Type: nut/pea/anthra

Post by davidmcbeth3 » Mon. Feb. 17, 2014 1:47 pm

Should move to Florida and buy the biggest house possible (Fl exempts house from BK~from my recollection, always double chk of course) .... and get away from our goofy gun laws...

keep the wifey if you want ...

 
User avatar
EarthWindandFire
Member
Posts: 1594
Joined: Sat. Dec. 18, 2010 12:02 pm
Location: Connecticut
Hot Air Coal Stoker Furnace: Leisure Line Lil' Heater.
Other Heating: Oil Furnace and Kerosene Heaters.

Post by EarthWindandFire » Mon. Feb. 17, 2014 1:51 pm

Thinking that an LLC or a Corporation protects and shields your personal assets in incorrect. In Connecticut for example, you have just a $ 75,000 homestead exemption. You can and will lose everything regardless of your business status.

http://www.nolo.com/legal-encyclopedia/connecticu ... ption.html

 
User avatar
freetown fred
Member
Posts: 30293
Joined: Thu. Dec. 31, 2009 12:33 pm
Location: Freetown,NY 13803
Hand Fed Coal Stove: HITZER 50-93
Coal Size/Type: BLASCHAK Nut

Post by freetown fred » Mon. Feb. 17, 2014 3:35 pm

Well then, I'll go back to some advice my Grandfather gave me. If you don't have it, don't spend it--I wonder what your investors/banks would be risking??? Ya didn't mention any concern for their involvement??? PLUS, they might have some suggestions
Last edited by freetown fred on Mon. Feb. 17, 2014 4:11 pm, edited 1 time in total.

 
User avatar
coaledsweat
Site Moderator
Posts: 13763
Joined: Fri. Oct. 27, 2006 2:05 pm
Location: Guilford, Connecticut
Stoker Coal Boiler: Axeman Anderson 260M
Coal Size/Type: Pea

Post by coaledsweat » Mon. Feb. 17, 2014 3:40 pm

May I inquire what kind of business? Will it have employees other than you? A place of business?

 
kstills
Member
Posts: 637
Joined: Tue. Jan. 18, 2011 6:41 am
Location: New Britain, PA
Stoker Coal Boiler: WL 110

Post by kstills » Mon. Feb. 17, 2014 3:52 pm

I'm guessing that you would put the assets in the wife's name to protect them, then divorce?

Might be hard to get the loans if you don't have any assets to begin with.

 
User avatar
EarthWindandFire
Member
Posts: 1594
Joined: Sat. Dec. 18, 2010 12:02 pm
Location: Connecticut
Hot Air Coal Stoker Furnace: Leisure Line Lil' Heater.
Other Heating: Oil Furnace and Kerosene Heaters.

Post by EarthWindandFire » Mon. Feb. 17, 2014 10:10 pm

I'm planning on a location in Norwalk and will need three employees. Myself, a warehouse manager and a driver.


Post Reply

Return to “Money & Finance”