Is This Crazy?
- EarthWindandFire
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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.??
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.??
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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.
Besides needing to have some kind of tax filing status. LLC's and S corps only give you very limited protection.
- Flyer5
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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.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.??
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If you incorporate I believe only the assets of the corporation are at risk.
Consult a lawyer.
Consult a lawyer.
- Flyer5
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Not always true.franco b wrote:If you incorporate I believe only the assets of the corporation are at risk.
Consult a lawyer.
P.S. Good luck with what ever you are looking to do.
- michaelanthony
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[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.?? [/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.
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.?? [/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.
- freetown fred
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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!
- davidmcbeth3
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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 ...
keep the wifey if you want ...
- EarthWindandFire
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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
http://www.nolo.com/legal-encyclopedia/connecticu ... ption.html
- freetown fred
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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.
- coaledsweat
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May I inquire what kind of business? Will it have employees other than you? A place of business?
- EarthWindandFire
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I'm planning on a location in Norwalk and will need three employees. Myself, a warehouse manager and a driver.