Offshore Checking/Savings Accounts - Safe from Leins and judgements??

[maporsche]

I'm about to be foreclosed on; which I'm totally cool with.

 

I have a question though; I want to protect myself from deficiency judgements and make sure lendors cannot freeze my assets. I'm wanting to know if there are any offshore banks that I can use as a checking account that will be similar to how I use my account in the US that would also be safe to deposit money into so that creditors cannot freeze those accounts.

 

I'm NOT looking to hide any money from the IRS and my employeer will still deduct all taxes, etc. Just wanting to protect my assets from creditors.

 

Thoughts?

[I Need help too]

Proud contributer to 7 8 LOCKED threads.

[bullthistle]

Best to check the laws in your state first before getting paranoid.

[bullthistle]

I checked MA laws assuming your handle is indicative of where you live and they don't pursue deficnecy balances.

 

Judicial Foreclosure Available: Yes

 

 

 

- Non-Judicial Foreclosure Available: Yes

 

 

 

- Primary Security Instruments: Deed of Trust, Mortgage

 

 

 

- Timeline: Typically 90 days

 

 

 

- Right of Redemption: No

 

 

 

- Deficiency Judgments Allowed: No

[maporsche]

Proud contributer to 7 8 LOCKED threads.

 

Really? Why?

 

I don't think I'm asking to do anything illegal. People are allowed to open up checking or savings accounts in other countries, right? And all I'm asking is if other countries recognize judgments and leins from countries outside the bank's country.

Edited February 4, 2010 by maporsche

[maporsche]

I checked MA laws assuming your handle is indicative of where you live and they don't pursue deficnecy balances.

 

Judicial Foreclosure Available: Yes

- Non-Judicial Foreclosure Available: Yes

- Primary Security Instruments: Deed of Trust, Mortgage

- Timeline: Typically 90 days

- Right of Redemption: No

- Deficiency Judgments Allowed: No

 

I'm in Illinois actually. Deficiency judgments are allowed.

[radi8]

They might be more difficult to levy, but they aren't impossible. The IRS manages often enough. I imagine a lot depends on exactly where, and which bank. You might do some reading on "asset protection planning"- there's a wealth of info out there on protecting assets from creditors claims.

[GEORGE]

DON'T BET THE FARM THAT THE MONEY IS SAFE

[smart1n]

For me I do the following:

 

Max out IRA contributions

Max out 401 K contributions including after-tax dollars 401k contributions (I believe with the combination you can contribution up to 49,000 if your plan allows it, I think I did about 25-26000 total)

Contribute yearly to my son's 529 plan (if you had to file bankruptcy however they only allow 5000 that year to be protected I believe)

 

Shortly I am going to purchase a whole-life non-direct recognition life insurance plan with a rider so that I can contribute more premiums. The difference between a non-direct recognition life insurance plan and a "standard insurance plan" is that if you take loans on the policy the dividends calculations are based on the amount you have remaining and the loan amount. So for example (using random figures)

 

I have a 500k insurance policy with 100k cash value

 

I take out a 40k loan from the policy to buy myself a BMW.

 

The dividend for the year by the mutual company (has to be mutual company..very important) is 5% (dividends are not guaranteed but they are typical)

 

The dividend is applied to the both the 40k and the 60K

 

I love to take products and maximize their usage. In this case I am becoming my own bank and will use the funds accordingly. There is no loan product out there where you can pay the loan back at your interval, and then earn money on the amount you borrow. In addition it's another asset protected play. I still have the cheap group life insurance policies at both of my jobs which has more than enough funds to bury me, pay my son's college tuition, living expenses etc.. this one I am using strictly to save for things like new car, major home repair, legal expenses, major medical emergencies, business startup.. stuff like that. Honestly , the fact that it is an insurance product is borderline irrelevant and just gravy for me.

 

The only "cash" I have on hand is my 1-year emergency fund, my external brokerage accounts. and short-term savings. The rest of my money is in asset protected vehicles. My philosophy is to maximize asset protection plans first, cash last.. so if I had a situation where I had to file bankruptcy, etc.. I can live to fight another day. I am not interested in the overseas stuff.. to risky imo. I think there is enough vehicles in the states to protect yourself.

 

YMMV of course and you have to check both the federal and state laws for their regulations and research in general.

Edited February 5, 2010 by smart1n