Can Essential Equipment To A Business Be Placed Into A Trust Prior To Bankruptcy

Can Essential Equipment To A Business Be Placed Into A Trust Prior To Bankruptcy

Before a business bankruptcy, be sure to move all personal assets (car, boat, liquid assets) into at a few trusts before a bankruptcy is filed for, in case of personal guarantee of business debts. Any business equipment that is non-essential can be transferred out into a trust – given there is a somewhat fair value exchange given. It may even be for advertising, management, digital information of value (like these digital programs), trustee working hours for the company – the list goes on. This is essential otherwise the courts would rule this a fraudulent conveyance due to obvious ethical issues.

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