Bankruptcy invalidating liens Free chats no sign up

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Thus, to understand suspect transactions, it is necessary to define what insolvency means and when do we say the person is insolvent?Simply, insolvency is inability to pay the debt when they become due and payable.Asset protection requires that you understand how liens arise and what property is protected from the reach of your creditors by federal or state law.

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A recording and perfecting of the lien on the title document can prevent the conveyance of a clear title to another, which, in most cases, will prevent the sale of the item.

If a company fails the test it means in effect, that it has insufficient resources available to pay creditors.

On the other hand, balance sheet test states that if its total liabilities (including the cost of liquidation) out weight the value of its assets and therefore the company’s assets are insufficient to discharge its debt.

The amount of time and money saved in avoiding litigation is substantial!

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In a court proceeding, there are three parts to a lawsuit: The plaintiff has the burden in each of these three parts. For example, if an employee making a delivery runs into the back of a vehicle stopped at a red light, there really is no issue as to whether the employee was negligent: The employee was negligent.You've heard it dozens of times: "the best defense is a good offense." This definitely holds true for asset protection.

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