Tips for Protecting Your Assets From Debt Collectors

Debt can be a terrifying thing. When you’re having trouble paying off loans and debts, you can feel helpless and scared. The weight of your outstanding payments starts to add up and you wonder if you’ll ever be able to get rid of it. This can especially escalate if you start to be pursued by creditors or debt collection agencies.

When you have payments due, every phone call or knock on the door can be nerve-wracking as you wonder if this is the moment debt collectors come to take away your possessions. But you don’t have to feel completely helpless and alone.

You still have power in this situation. Even if you can’t pay a particular bill, you do not deserve to be harassed and ridiculed. Besides, debt collectors can be tricky and sometimes fraudulent. It is up to you to know and understand your rights and how to protect the things that are important to you.

Whether you’re in trouble personally or as a business entity, there are ways to protect your assets from debt collectors. It may be time to consult with a law firm or even transfer your assets to different accounts or individuals. When you love and care about something, you need to protect it. Take back control over your debt and your life with these simple tips to protect your assets and work to get creditors off your back. Get back to living life in peace without constant worry and insecurity.

What type of debt are you on the hook for?

There are a few different types of debt collectors and many types of debt they will be collecting. If you stopped making payments on student loans, personal loans, credit card debt, auto loans, or your mortgage, creditors may begin contacting you to collect on what they are owed.

The company itself may reach out with a lawsuit to demand you pay with funds or with assets such as small cars, expensive gems, or even property. If they cannot reach you, you may start receiving calls from a collection agency or a debt buyer.

Regardless of why you’re in this situation, you still have rights and ways to protect your assets so you aren’t left with anything when all is said and done. Make sure you understand what kind of debt collection you’re facing before you figure out what to do about it.

Consult with your legal team.

Debt collection is no joke, but there can also be a lot of confusion surrounding what is legal and what isn’t. If you feel you are being harassed or pursued unfairly, it is within your rights to seek legal counsel to increase your protection for yourself and your assets during this affair.

Your Legal Rights Advocates offer free consultations to give you legal advice regarding your specific case. Their specific goal is to provide great customer service while protecting you from debt harassers and fraudulent collection agencies.

Harassment from debt collectors is illegal, so if you need a secure option for your case and to help you feel safe from these agencies, consult a legal team today.

Know your rights.

The power of information can be one of your greatest tools as a debtor. Information is key when you’re seeking legal representation to stop the harassment, according to renowned New York Lawyer Howard Fensterman. Whether it’s your debt, your legal rights, or your gem collection, he wants to help spread information and get the American people back on their feet.

Of course, you signed a contract and are responsible to pay off your debts. Because of this, there are some things debt collectors are legally able to do. They are allowed to contact you and reach out for payment, even for debts that are several years old.

They can also take you to court to demand payment for your debts. This can come in the form of money or payment through your assets. For this reason, you may want to transfer or sell your assets before any lawsuit comes to fruition. After they’ve won a lawsuit and assertion for a property, they can also garnish your wages directly from your employer to pay off your debt.

While all these things are within the legal rights of collectors, there are plenty of things that they are not legally allowed to do that aren’t up to ethical standards. They can’t stalk your neighborhood to intimidate you or get the phone number of your closest friends and harass your family.

Also, if you ask them to stop harassing you in writing, they legally have to oblige. Knowing this and using the facts to your advantage can be one of the easiest, most efficient ways to get debt collectors off your back and save your assets.

Get rid of your stuff.

Perhaps the simplest way to guarantee that collectors can’t take your assets is to get rid of them. Sell your prized items to someone close to you, so they’re still in good hands and can’t be taken away. If you have a sports car or classic car that you love, consider selling it or signing over the deed to a friend or family member.

Store it in a vehicle storage unit for a long period of time so you can handle the whole process of debt collection before reinvesting. You can find the best option for cheap vehicle storage near you and utilize the opportunity for self-storage. Just hiding your possessions in a storage facility won’t do the trick completely though. You will need to sell or sign over possession to fully protect those assets.

This can be especially beneficial for spouses. If you are worried about being pursued or a lawsuit forcing you to surrender your home and assets, your spouse can take over control of the mortgage and other assets so they can’t be touched. As your counterpart and executive partner in life, they can be financially responsible while you get your debt back under control.

This way you won’t have to worry about losing an important asset like your Tiffany diamonds or a classic car, you know they’re in good hands and out of reach.

Keep detailed records.

Whenever money is involved, it is crucial that you keep detailed records. This will allow you to contest any debt collection agencies that you feel are in the wrong. If you believe you already paid for a citation or don’t have outstanding debt, you can prove it thanks to your records.

If you get desperate, you can pursue offshore options.

In the event of a lawsuit and the terms of use of the case, it can be very difficult to hide your assets within the United States. If you’re really desperate to save your money and possessions, you can pursue opening an offshore account. As long as you do all the paperwork correctly, you can invest with third parties in offshore jurisdictions. This means debt collectors can’t touch your assets. This may be the best thing if you owe a great deal or are protecting the assets of a company, not just yourself.

Separate your personal and business accounts.

Perhaps you are in debt because you started your own business and the expenses got to be too much. There are a few different options here, but they all start by creating a separate LLC for your business and all those expenses. Separating your finances from your businesses‘ means debt collectors can only pursue funds from the entity that owes money. So if your company is in debt but you aren’t, your assets can’t be seized to pay off discrepancies in the LLC.