Is this crazy?

Is this crazy?

PostBy: EarthWindandFire On: Mon Feb 17, 2014 11:10 am

I'm trying to start a business. I will have to go into debt very heavily and borrow money from investors and a bank. What I want to prevent is losing my house if I default.

Even though this is a public forum, I can ask or say crazy things and remain fairly anonymous. So here's my question!

Is it a crazy thought to get divorced to protect my assets from bank seizure.?? :oops:
EarthWindandFire
 
Hot Air Coal Stoker Furnace: Leisure Line Lil' Heater.
Hand Fed Coal Stove: Hitzer model 75.
Other Heating: Oil and Natural Gas.

Re: Is this crazy?

PostBy: Carbon12 On: Mon Feb 17, 2014 11:14 am

If you completely trust her,....only slightly crazy. Investigate a L.L.C.
Carbon12
 
Stoker Coal Boiler: Keystoker KA-6
Coal Size/Type: Rice/Anthracite
Other Heating: Heat Pump/Forced Hot Air Oil Furnace

Re: Is this crazy?

PostBy: Wanna Bee On: Mon Feb 17, 2014 11:35 am

I'd try to get unsecured financing before anything. I never used my home as collateral on any of my business loans. I always figured even if everything else feel apart I would always have a place to lay my head.

Besides needing to have some kind of tax filing status. LLC's and S corps only give you very limited protection.
Wanna Bee
 
Stove/Furnace Make: Grander Stove Co.
Stove/Furnace Model: Royal Bride


Re: Is this crazy?

PostBy: Flyer5 On: Mon Feb 17, 2014 11:36 am

EarthWindandFire wrote:I'm trying to start a business. I will have to go into debt very heavily and borrow money from investors and a bank. What I want to prevent is losing my house if I default.

Even though this is a public forum, I can ask or say crazy things and remain fairly anonymous. So here's my question!

Is it a crazy thought to get divorced to protect my assets from bank seizure.?? :oops:




Form a corp. Banks may still expect your personal property as collateral. When we bought LL we leveraged just about every asset we had. Makes ya feel even better when you hear of the deadbeats collecting off the system and feeling entitled never risking anything.
Flyer5
 
Stoker Coal Boiler: Leisure Line WL110
Hot Air Coal Stoker Stove: Leisure Line Pioneer

Re: Is this crazy?

PostBy: franco b On: Mon Feb 17, 2014 11:36 am

If you incorporate I believe only the assets of the corporation are at risk.

Consult a lawyer.
franco b
 
Hand Fed Coal Stove: V ermont Castings 2310, Franco Belge 262
Baseburners & Antiques: Glenwood Modern Oak 114
Coal Size/Type: nut and pea

Re: Is this crazy?

PostBy: Flyer5 On: Mon Feb 17, 2014 11:38 am

franco b wrote:If you incorporate I believe only the assets of the corporation are at risk.

Consult a lawyer.



Not always true.


P.S. Good luck with what ever you are looking to do.
Flyer5
 
Stoker Coal Boiler: Leisure Line WL110
Hot Air Coal Stoker Stove: Leisure Line Pioneer

Re: Is this crazy?

PostBy: lsayre On: Mon Feb 17, 2014 11:39 am

Look up LegalZoom.com

A 'LLC' is what you need here. Not a divorce.
lsayre
 
Stoker Coal Boiler: AHS S130 Coal Gun
Coal Size/Type: Stockton Anthracite Pea
Other Heating: Resistance Boiler (13 KW)

Re: Is this crazy?

PostBy: michaelanthony On: Mon Feb 17, 2014 11:52 am

[quote="EarthWindandFire"]I'm trying to start a business. I will have to go into debt very heavily and borrow money from investors and a bank. What I want to prevent is losing my house if I default.

Even though this is a public forum, I can ask or say crazy things and remain fairly anonymous. So here's my question!

Is it a crazy thought to get [i][u][b]divorced[/b][/u][/i] to protect my assets from bank seizure.?? :oops:[/quote]

I think I know where you're going, my ex-mother in law divorced her husband (on paper) when he was first thought to have dementia in order to keep her house and put him in a nursing home, of course there was a strict time frame involved that precluded.
michaelanthony
 
Hand Fed Coal Stove: Vigilant 2310, gold marc box, vogelzang pot belly coat rack
Coal Size/Type: Pea, and a little nut
Other Heating: Very cold FHA oil furnace

Re: Is this crazy?

PostBy: freetown fred On: Mon Feb 17, 2014 11:56 am

With the LLC--only the company & it's assets can be gone after--nothing personal property wise. As far as divorce, you'd be amazed at how ya can get screwed on that one--yeah, yeah, I know, the wife is a real sweetheart & your circumstances would be different! :clap: toothy
freetown fred
 
Hand Fed Coal Stove: HITZER 50-93
Coal Size/Type: BLASCHAK Nut/Stove mix

Re: Is this crazy?

PostBy: davidmcbeth3 On: Mon Feb 17, 2014 2:47 pm

Should move to Florida and buy the biggest house possible (Fl exempts house from BK~from my recollection, always double chk of course) .... and get away from our goofy gun laws...

keep the wifey if you want ...
davidmcbeth3
 
Coal Size/Type: nut/pea/anthra
Stove/Furnace Make: Hitzer
Stove/Furnace Model: 503

Re: Is this crazy?

PostBy: EarthWindandFire On: Mon Feb 17, 2014 2:51 pm

Thinking that an LLC or a Corporation protects and shields your personal assets in incorrect. In Connecticut for example, you have just a $ 75,000 homestead exemption. You can and will lose everything regardless of your business status.

http://www.nolo.com/legal-encyclopedia/connecticut-bankruptcy-homestead-exemption.html
EarthWindandFire
 
Hot Air Coal Stoker Furnace: Leisure Line Lil' Heater.
Hand Fed Coal Stove: Hitzer model 75.
Other Heating: Oil and Natural Gas.

Re: Is this crazy?

PostBy: freetown fred On: Mon Feb 17, 2014 4:35 pm

Well then, I'll go back to some advice my Grandfather gave me. If you don't have it, don't spend it--I wonder what your investors/banks would be risking??? Ya didn't mention any concern for their involvement??? PLUS, they might have some suggestions
Last edited by freetown fred on Mon Feb 17, 2014 5:11 pm, edited 1 time in total.
freetown fred
 
Hand Fed Coal Stove: HITZER 50-93
Coal Size/Type: BLASCHAK Nut/Stove mix

Re: Is this crazy?

PostBy: coaledsweat On: Mon Feb 17, 2014 4:40 pm

May I inquire what kind of business? Will it have employees other than you? A place of business?
coaledsweat
 
Stoker Coal Boiler: Axeman Anderson 260M
Coal Size/Type: Pea

Re: Is this crazy?

PostBy: kstills On: Mon Feb 17, 2014 4:52 pm

I'm guessing that you would put the assets in the wife's name to protect them, then divorce?

Might be hard to get the loans if you don't have any assets to begin with.
kstills
 
Stoker Coal Boiler: WL 110
Stove/Furnace Make: Leisure Line

Re: Is this crazy?

PostBy: EarthWindandFire On: Mon Feb 17, 2014 11:10 pm

I'm planning on a location in Norwalk and will need three employees. Myself, a warehouse manager and a driver.
EarthWindandFire
 
Hot Air Coal Stoker Furnace: Leisure Line Lil' Heater.
Hand Fed Coal Stove: Hitzer model 75.
Other Heating: Oil and Natural Gas.