If you face a lawsuit, you might be charged with a fee. If you cannot pay the amount required in the decision, creditors will go after your assets. An asset is anything you own, either as an individual or as a company, which has value. One of your most significant assets is the property that you own. If you stop paying your mortgage payments on the home that you own, creditors will go after the property. Even if you got in a car accident and you are deemed at fault, you might need to pay an amount beyond your capacity, and creditors could go after your property. Asset protection for your property is something you should consider if you have many real estate assets.
Asset protection in Brazil is important for people that invest in property or businesses. Especially if you were to purchase property in Brazil in addition to any property you owned in the United States, a creditor could easily take the property away in the event of a lawsuit. This would obviously be detrimental, especially if you had purchased the property to develop your business.
However, if you do get wrapped in a lawsuit of any kind, it is already too late to protect your assets. In Brazil, you must protect your assets long before any judgment by a creditor. If you try protecting them during a lawsuit the court will know that you’re simply protecting them based on the lawsuit, and the action will be reversed.
Some Helpful Information
As you begin your research, you might realize that the information is complex and you will need to speak with an attorney in Brazil to get the best protection for your real estate assets. However, there are a few tips you can use to start off on the right foot:
- Start planning for asset protection early. As previously stated, it is already too late if you are in a lawsuit. So, consider protecting your assets as soon as possible, especially if you are in a profession with a high risk of lawsuits.
- Similarly, it is recomendable not to think about looking into asset protection if you currently face a lawsuit. It will only make matters more complicated. You will loose all hope for getting a discharge from the lawsuit for bankruptcy, and you might even need to pay the creditor’s attorney fees to reverse the damage.
- Get an asset protection plan that works with your estate planning. Asset protection does protect your property so that it can be handed down with your estate someday, but putting your homestead in the protection plan will lock the value down so that your property won’t gain value over time. If you’re protecting your assets in Brazil, be sure that you check in on your estate plan first.
- Do not choose a plan that relies on secrecy. Some asset protection plans in Brazil claim that creditors can’t take your assets if they can’t find them, so they make your property assets anonymous. If you rely on this type of plan, you could be charged for perjury or bankruptcy fraud if you try filing for bankruptcy without making these assets known. While opting for asset protection is an excellent decision, secrecy shouldn’t be part of the deal.
If you’re purchasing property in Brazil from overseas, contacting our Brazilian lawyers before committing may be a life saver.