Money owed in the form a note or accounts receivable is often times overlooked as an important Asset to protect. If a third parties owes you personally or your business money, that is an asset a creditor can take from you. The first step to protecting promissory notes or money owed is to make sure that the note is memorialized in writing. Next, the note payable should not be owed to you personally or your business directly. The note should be paid to a separate protective entity. We recommend having a separate LLC own the note directly. The LLC is ideal for insulating yourself from being personally liable for any potential litigation tied to the note and likewise it protects your receivables from any personal litigation or liabilities.
Another alternative to protect accounts receivables is to sell your receivables to a factor that will purchase the receivables at a discounted price. You can also sell mortgages or other notes due to you, as well as judgments or other claims against third parties. Or you might accelerate payment of the receivable by offering an attractive discount. You can certainly more easily protect cash than you can money due you on a note. Once the accounts receivables are converted into cash, you can use both domestic and International entities to better protect the cash. Again, you will want to title notes, mortgages, structured settlements and other significant future monies due to a protective entity. We may also pledge the note as collateral security to a more friendly creditor to equity-strip it.
For more information on Asset Protection contact The Presser Law Firm, P.A.
6199 N. Federal Highway, Boca Raton, FL 33487
(561) 953-1050
Info@AssetProtectionAttorneys.com