Madgett LawMinneapolis · Minnesota

Distressed Asset Protection

Asset protection planning in Minnesota, done before there's a claim: what you own, what's exposed to creditors, and what the law lets you do about it.

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Asset protection is planning you do before anyone comes after you. Once there’s a claim, it’s a different conversation.

The people this matters most for are professionals with malpractice exposure, business owners who’ve signed personal guaranties, and property owners. The right time is when the business is healthy, nothing is pending, and nothing is foreseeable.

Timing is the part people get wrong. Transfers made once a creditor is on the horizon can be unwound as fraudulent transfers, and trying one can leave you worse off than doing nothing. If you’ve already been sued, the conversation should be about defending the claim, not about moving assets.

What we do

  • Inventory: We help you list what you own and look at how exposed each piece is to creditors or lawsuits.
  • The plan: We work out a plan built around your goals, disclosed and structured under existing law.
  • Putting it in place: We do the documents and transfers that carry the plan out.
  • Keeping it current: We check back as your situation changes and adjust the plan.

Hiding assets from a known creditor isn’t planning. We don’t do it.

Start with what you already have

Minnesota law already shields certain categories of property from creditors, including homestead and specified personal property, and there are statutory limits on wage garnishment. Those protections aren’t automatic in every situation, and several are waived if you don’t claim them.

An LLC can help, but not the way people often assume. An entity generally separates business liabilities from personal ones. It doesn’t shield you from your own conduct, from obligations you personally guaranteed, or from claims where the entity’s formalities were never respected.

What to bring

A list of what you own and how each piece is titled, your entity documents, any personal guaranties you’ve signed, and a plain account of any claim that’s pending or threatened.

Talk to us

Send us a message or call 612-470-6529.

Common questions

Can I protect my assets after I have already been sued?

This is the single most important thing to understand about asset protection: it is planning done in advance, not a response to a claim. Transfers made once a creditor is on the horizon can be unwound as fraudulent transfers, and attempting one can make your position considerably worse than doing nothing. If a claim already exists, the conversation should be about defending it, not about moving assets.

When is the right time to set up asset protection?

Before there is anything to protect against — when the business is healthy, no claim is pending, and nothing is foreseeable. Planning done in calm conditions is durable; planning done under pressure invites attack. Professionals with malpractice exposure, business owners with personal guaranties, and property owners are the people for whom this matters most.

Does an LLC protect my personal assets?

It can, but not the way people often assume. An entity generally separates business liabilities from personal ones, but it does not shield you from your own conduct, from obligations you personally guaranteed, or from claims where the entity's formalities were never respected. The protection is only as good as how the entity is actually operated.

Is asset protection the same as hiding assets?

No, and the distinction matters legally. Legitimate planning is disclosed, structured under existing law, and survives scrutiny. Concealment — moving assets to defeat a known creditor, or failing to disclose them where disclosure is required — is a different thing entirely and carries real consequences. We only do the first kind.

What protections does Minnesota law already give me?

Minnesota provides certain exemptions that shield categories of property from creditors, including homestead and specified personal property, and there are statutory limits on wage garnishment. These are not automatic in every situation and several are waived if they are not claimed. Knowing what you already have is the sensible first step before building anything new.

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