How to Survive Judgments, Tax Liens and Lawsuits (Part 4 of 4)
Over the past few weeks, we’ve shared practical ways to safeguard your business and personal assets when facing judgments, tax liens, and lawsuits. From incorporation to working strategically with secured parties, the goal has been the same: position yourself so you can negotiate from strength, not desperation. In this final installment, we’ll cover a couple of additional strategies that can free up cash, reduce risk, and keep creditors at bay—even if you don’t have a bank relationship to lean on.
We have gone over several ideas over the past few weeks. Here are a few final suggestions on this topic.
A couple more ideas to help you protect yourself:
- If you don’t have a bank, you can also protect machinery and equipment by selling it to a leasing company and leasing it back. This also will generate cash for your business to help in moving forward.
- Depending on your circumstances, instead of increasing inventory to protect cash, you may be better off actually reducing inventory to Just In Time (JIT). This also generates much needed cash and lowers the value someone could get by liquidating the inventory through a bankruptcy.
Surviving judgments, tax liens, and lawsuits isn’t about luck, it’s about planning and positioning. Whether it’s preplanning with personal guarantees, incorporating your business, staying close to your secured party, or applying creative strategies like leasebacks and inventory management, each step strengthens your protection and increases your options.
If you missed earlier parts of this series, go back and catch up on all four strategies—they could mean the difference between keeping your business afloat or losing it all. And if you’re ready to put these ideas into action, now is the time to review your structure and make the changes that will safeguard your future. We invite you to give us a call; let us strategize with you, and evaluate your situation. We can help you create a strategy that will protect your business.
