Help Center

ABI Blog Exchange

protect assets

Can a trust protect your assets from loss?

According to the lawyer advertising and the self-help books, everyone needs a revocable trust.

The asset protection industry loves irrevocable trusts to get assets out of your name so your creditors can’t reach your wealth.

So, do trusts work in bankruptcy to change the rights of debtors and their creditors?

Not so much.

What’s a revocable trust

A revocable trust is also called a living trust.  It’s created during the lifetime of the person putting their assets in trust.

The settlor, the person creating the trust, can unwind the trust altogether.  Or, the settlor can extract one or more assets from the trust.  It’s revocable.

The appeal of a revocable trust is that assets owned by a trust don’t need to be probated at the settlor’s death.  The terms of the trust determine who gets the trust assets.

1 week 2 days ago

Last week in Macy v. GC Services, the United States District Court for the Western District of Kentucky certified a class action involving the Fair Debt Collection Practices Act (“FDCPA”).  According to the plaintiffs, GC Services Limited Partnership violated the FDCPA by sending them debt collection notices which failed to specify that debt validation is only required if the customer disputes the debt in writing.

The Court rejected GC Services’s argument that a class is unascertainable. GC Services contended that the plaintiffs had not shown that every class member had “suffered an injury sufficient to confer standing.”  The Court noted that the “majority of courts” (not addressed in the Sixth Circuit) do not require the named plaintiffs in a class action to demonstrate that “each and every class member could satisfy an individualized standing inquiry” at the class certification stage.

Read More from: Creditors' Sidebar

1 week 2 days ago

    I’d like to take some time to layout my unique youth basketball coaching strategy, and demonstrate how it has guided my personal brand of commercial litigation: Precision Litigation. Less is more. — Take a moment, close your eyes, and picture a basketball coach. What did you see? If you’re like me, you saw someone sweating on the sidelines of the court shouting incomprehensible phrases at the players. Calmness is not a trait typically associated with basketball coaches, professional or recreational – and that’s what makes the games that I coach stand out. Moreover, it’s what makes me stand out. You won’t hear me screaming from the bench, nor will I give long-winded speeches during practices, before games, or even after them. Under my coaching philosophy, these forms of communication are unnecessary. I communicate with my team by condensing my strategies into buzzwords and soundbites that only take a moment for me to say and a moment for my players to understand: “Crash,” “Hide Your Numbers,” “Reach,” and “Cut” are just a few. I focus on essential tactics and let the others go. Less is more. Precision is key. Without question, I attribute this philosophy to my team’s success. Litigation is no different. State and Federal Judges are being asked to do more with less. Juries have limited attention spans. Mediators and arbitrators have busier caseloads, too. As a result, I find myself competing for their attention all too often.

Read More from: Bernstein-Burkley, P.C.

1 week 2 days ago

A federal appeals court agreed Thursday to hear an appeal by the Consumer Financial Protection Bureau challenging a ruling last year that its single-director structure is unconstitutional, a victory for the embattled agency.

Read More from: BankThink

1 week 3 days ago

JPMorgan Chase has partnered with the fintech firm Roostify to build a digital self-service mortgage platform.

Read More from: BankThink

1 week 3 days ago

After recording a $35.9 million quarterly loss, the online small-business lender said that it plans to reduce its annual expenses by $20 million, cut 11% of its staff and more than double its loan-loss provision from a year earlier.

Read More from: BankThink

1 week 3 days ago

U.S. District Judge Gladys Kessler is set to rule next week on whether to halt the Justice Department's quest to force banks to cut ties to industries it considers to be at high risk for criminal activity.

Read More from: BankThink

1 week 3 days ago

The financial industry has been bracing for the Trump administration’s planned revisions to Dodd-Frank, but banks are taking aim at another, potentially even more consequential regulatory framework: the rules and procedures around curbing money laundering and financial support of terrorism.

Read More from: BankThink

1 week 3 days ago

Alex Acosta played an instrumental role helping the bank raise capital and emerge from a 2011 regulatory order.

Read More from: BankThink

1 week 3 days ago

Instead of sitting around waiting for the next cyberattack, banks are trying to get a little ahead – without breaking the law.

Read More from: BankThink

1 week 3 days ago
By Stephen W. Sather
Barron & Newburger, P.C.
Austin, TX
I recently wrote about a case that could not escape Delaware's gravity here.   However, a new decision from Judge  Laurie Selber Silverstein shows that it is possible to gain a transfer of venue out of The First State.    Case No. 17-10201, In re LMCHH PCP, LLC (Bankr D. Del).     

Read More from: CLLA Bankruptcy Blog

1 week 3 days ago

        Structured dismissals have become an attractive option for debtors in recent years.  The outcome of a case pending before the Supreme Court, however, may halt that trend. 

         On December 7, 2016, the United States Supreme Court heard oral arguments in Czyzewski v. Jevic Holding Corp.[1] to decide if a bankruptcy court can approve settlements that contravene the Bankruptcy Code’s priority scheme in section 507, so long as the court finds that no creditor would be better off under any available alternative (even though some creditors would fare better under the otherwise non-compliant settlement). 

1 week 3 days ago

The deal with American Homestead Mortgage will allow Wintrust Mortgage to move into northern Montana.

Read More from: BankThink

1 week 3 days ago

Yellen has good things to say about Volcker rule and CFPB, while Tarullo backs tighter reins on big banks; Trump said to be considering Mnuchin deputy as Comptroller of the Currency.

Read More from: BankThink

1 week 3 days ago

OpenFin, a devotee to open source software, has raised $15 million in Series B funding to fuel staff expansion, business development and new products.

Read More from: BankThink

1 week 3 days ago

A protectionist banking policy could lead to reprisal from overseas regulators, financial instability and less cross-border business.

Read More from: BankThink

1 week 3 days ago

The New York State Department of Financial Services is hoping to expand its authority to marketplace lenders, brokers, merchant cash advance companies and others that previously could operate in the state without a license.

Read More from: BankThink

1 week 3 days ago

Freddie Mac's net income increased to $4.8 billion in the fourth quarter, more than double what it earned a quarter earlier, the government-sponsored enterprise announced Thursday.

Read More from: BankThink

1 week 3 days ago

A dozen global transaction banks are now using the Society for Worldwide Interbank Financial Telecommunication's new global payments initiative service to improve cross-border payment delivery.

Read More from: BankThink

1 week 3 days ago

Pages