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Month: January 2025
Advanced Strategies for Protecting Family Wealth From Creditors and Lawsuits

On Behalf of O’Brien Law Firm, LLC

Posted on: January 22, 2025

Life can be full of unexpected challenges. No one ever thinks they will face a lawsuit or deal with aggressive creditors, but it happens quite often. For families who have worked hard to build their wealth, protecting those assets is incredibly important. Protecting family wealth requires careful and strategic planning. If you are wondering how to keep your family’s financial future safe, here are some advanced strategies that can help.

1. Create a Family Limited Partnership (FLP)

A Family Limited Partnership, or FLP, is a smart way to protect family assets while keeping them within the family. An FLP involves transferring assets like property or investments into a partnership. Family members become limited partners, but control stays with the general partner, who is often a parent or family leader​.

2. Use an Asset Protection Trust

An Asset Protection Trust (APT) is one of the strongest ways to keep wealth safe. An APT takes assets out of your name and puts them into a trust controlled by a trustee. Because the trust cannot be changed once it is set up, creditors cannot access those assets. Offshore APTs offer even more protection since they are beyond the reach of U.S. courts​​.

3. Title Property Strategically

Sometimes, how you own property can make all the difference. Married couples, for example, can title property as “Tenants by the Entirety.” This form of ownership protects property from creditors if only one spouse is in debt. Creditors cannot force the sale of the property to collect on a debt owed by just one partner. This simple change can offer a strong layer of protection for your family’s most valuable assets​.

4. Use Accounts-Receivable Financing

For business owners, accounts-receivable financing can be an effective tool for asset protection. This strategy involves borrowing against the money a business is owed and moving that cash into safer investments, like annuities or retirement accounts. By doing this, the business appears less valuable to creditors, and personal or family wealth stays secure​.

O’Brien Law Firm, LLC, has the experience to create a personalized plan that keeps your financial future safe. Contact us today to start protecting what you have worked so hard to achieve.

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Navigating the Complexities of Bankruptcy Filings for Serial Entrepreneurs

On Behalf of O’Brien Law Firm, LLC

Posted on: January 22, 2025

Starting a business always comes with risks. For serial entrepreneurs in Mississippi, taking chances on multiple ventures can sometimes lead to financial hurdles down the road. When debts pile up and businesses struggle, filing for bankruptcy may feel like the only way out. However, bankruptcy is not always straightforward, especially for entrepreneurs who have started more than one business.

What Bankruptcy Means for Serial Entrepreneurs

Bankruptcy is meant to help people and businesses manage debt, but it affects serial entrepreneurs differently. For small business owners, especially those who have started multiple ventures, bankruptcy often focuses more on personal financial issues than on saving a business.

Chapter 11 bankruptcy is one option for struggling businesses, allowing them to reorganize their debts. However, it can also trap entrepreneurs in a failing business longer than necessary. This situation is known as the “lock-in effect,” where staying with an existing business feels easier than starting a new one.

In Mississippi, entrepreneurs have several bankruptcy options to consider:

  • Chapter 7 Bankruptcy: This involves selling off assets to pay debts. It can give entrepreneurs a fresh start but may also put personal assets at risk if they have guaranteed business debts.
  • Chapter 11 Bankruptcy: This allows businesses to restructure debts, but it can make it harder for entrepreneurs to leave a failing business and try something new.
  • Chapter 13 Bankruptcy: This option works best for sole proprietors. It lets them create a plan to repay debts over time while keeping some control over their business.

The Challenges Entrepreneurs Face During Bankruptcy

Filing for bankruptcy is stressful and complicated, but serial entrepreneurs face even more challenges.

  • Struggling to Get Credit: After filing, it can be difficult to get loans or funding for future business ideas because of damaged credit.
  • Emotional Stress: Business failure is tough, and it can make entrepreneurs hesitant to try again, even if bankruptcy laws are meant to help.
  • Complex Legal Processes: Bankruptcy laws are not simple. Entrepreneurs need to understand how filing will affect their personal debts and future plans.

O’Brien Law Firm, LLC, knows how challenging this process can be for serial entrepreneurs in Mississippi. Contact our team today to learn how we can help you move forward.

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“From my initial consultation throughout the entire process, Mr. O'Brien and his staff handled my legal matters with the utmost professionalism and care. I am especially grateful for Crystal who patiently answered all my questions and put my mind to ease over and over. Thank you O'Brien Law Firm, LLC!”
– C.H.
“Thank you so much for the advice. I knew I chose the right attorney!”
– C.H.

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