Ch. 4: Goals of Asset Protection
Ch. 4: Goals of Asset Protection
Favorable Psychology of Settlement
Synopsis: Discusses the psychology of settlement as it relates to asset protection planning.
Definition: Psychology of Settlement -- The parties' consideration of the totality of circumstances involved in a case as impacting their decision to settle the case or continue litigation.
Subtlety
Synopsis: Discusses the foolishness of "in your face" asset protection planning, and the importance of subtlety in planning.
Creation of Offensive Opportunities
Synopsis: Discusses planning that encourages creditors to overreach, thus creating counterattack opportunities for the debtor.
Transference
Synopsis: Discusses planning that has the effect of transferring responsibility to a third-party, such as an insurance company.
Totality
Synopsis: Discusses the importance of protecting all significant assets from creditors.
Containment
Synopsis: Discusses the encapsulation of liability within entities.
Definition: Bankruptcy Remote Entity (BRE) -- An entity that acts to contain and resolve litigation away from valuable assets, and which can file for bankruptcy without subjecting the valuable assets to the bankruptcy proceeding.
Flexibility
Synopsis: Discusses the importance of flexibility in the asset protection plan to meet changing circumstances and evolution of the laws.
Redundancy and Diversity
Synopsis: Discusses the importance of making components of the asset protection plan "fail safe".
Definition: Defense-In-Depth -- A strategy whereby multiple layers of defenses are created with the idea that even though the creditor might ultimately be able to break through each layer, the creditor will eventually be worn down and settlement will be facilitated.
Favorable Psychology of Settlement
Synopsis: Discusses the psychology of settlement as it relates to asset protection planning.
Definition: Psychology of Settlement -- The parties' consideration of the totality of circumstances involved in a case as impacting their decision to settle the case or continue litigation.
Subtlety
Synopsis: Discusses the foolishness of "in your face" asset protection planning, and the importance of subtlety in planning.
Creation of Offensive Opportunities
Synopsis: Discusses planning that encourages creditors to overreach, thus creating counterattack opportunities for the debtor.
Transference
Synopsis: Discusses planning that has the effect of transferring responsibility to a third-party, such as an insurance company.
Totality
Synopsis: Discusses the importance of protecting all significant assets from creditors.
Containment
Synopsis: Discusses the encapsulation of liability within entities.
Definition: Bankruptcy Remote Entity (BRE) -- An entity that acts to contain and resolve litigation away from valuable assets, and which can file for bankruptcy without subjecting the valuable assets to the bankruptcy proceeding.
Flexibility
Synopsis: Discusses the importance of flexibility in the asset protection plan to meet changing circumstances and evolution of the laws.
Redundancy and Diversity
Synopsis: Discusses the importance of making components of the asset protection plan "fail safe".
Definition: Defense-In-Depth -- A strategy whereby multiple layers of defenses are created with the idea that even though the creditor might ultimately be able to break through each layer, the creditor will eventually be worn down and settlement will be facilitated.
Labels: asset protection, bankruptcy remote, defense in depth, encapsulation of liability, psychology of settlement
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