Los Angeles (PRWEB) September 30, 2005
Asset protection (lawsuit protection) is more important now than it has been in the history of the US, asserts Kevin Wessell, the asset protection expert and who heads LA-based Companies Incorporated.
Beginning in October 2005 a new law will go into effect that eliminates Chapter 7 debt elimination bankruptcy for 50% of the population. If you made more than the median income of your state, you can no longer wipe out your debts. You will be forced into a chapter 13 bankruptcy instead which gives the courts control of your spending and allocates a significant portion of your income to your enemies-at-law, said Mr. Wessell.
Asset protection is controversial. Some say, Well if you loose a lawsuit, you should pay. Where others agree with the attitude, Ive worked hard for my money. If someone wants to take it away from me, they are going to have to work much harder, according to Mr. Wessell.
Mr Wessell went on to say: Lets say you get into a car wreck. You dont notice a stop sign and you sideswipe a stockbroker. He is seriously injured and requires hospitalization. The stockbrokers attorney sees that you own a home, a car and have a bank account. Once they see you have assets to seize, the attorney agrees to take the case. The judge deems you responsible. You get judgment against you for one million dollars. The good news is that you have $ 500,000 of insurance. But the bad news is that you only have $ 500,000 of insurance.
You get a phone from the opposing attorney saying, Write me a check for $ 500,000.
You say, I dont have the money.
Ill help you then, he says.
You wake up one morning and your checking account is empty. Then your savings account is empty. Pretty soon the Sheriff pulls up in front of your house demanding that you leave. You house is sold on the courthouse steps. You are left, broke, confused and embarrassed and homeless. Did you know that most homeless people are not wandering hobos? Most are people like you and me who lost everything in scenarios such as the one we have just described. So, what do I do? you may ask. Well, since you asked, here is a solution:
The secret to asset protection consist of these two points: