Bankruptcy Can Be a Great Investment.(Brief Article)
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WANT TO DOUBLE OR TRIPLE your net worth? Want the best investment in town? It’s easy–just go bankrupt! If you do it right, you can keep all your assets and eliminate all your debts—even those owed to the Internal Revenue Service. (Bankruptcy originally meant broken bench. In common-law England, when a merchant or craftsman couldn’t pay his debts, the custom in the community was to break his workbench. This publicly established that the craftsman was no longer in business. Quite often, the creditors at that time would seek to perform the ceremony across the head of the impecunious debtor.) Things have changed since I was a kid. Now, bankruptcy laws are used as proactive shields not only to deflect creditors, but to eliminate them as well. While the bankruptcy law itself is Federal, the exemptions are state-derived. Each state determines which assets are forfeited in a bankruptcy and which assets are exempt from… |