What is an account freezing order and how can it be used in asset protection planning?

An account freezing order, also known as a “freezing injunction”, is a court order which legalizes a temporary freeze on certain assets. This enforcement may be used in asset protection planning in order to protect a person’s assets from potential creditors. The New York Civil Practice Law and Rules (CPLR) allows individuals to place a ‘freeze’ on their accounts during asset protection planning. When an account freezing order is issued, it prohibits a person from making any transactions with their assets until the order is vacated. This can be beneficial in situations when a person wants to protect their assets from creditors, or wants to make sure certain assets are not liquidated in order to avoid a lawsuit. For example, if a business owner is filing for bankruptcy, an account freezing order can be used to protect a portion of their assets from being liquidated to pay off creditors. This ensures that the business owner still has the funds available to use for living expenses or to keep the business operating. Depending on the state in which the asset protection plan is being implemented, there may also be a variety of other enforcement measures available in addition to an account freezing order. These measures can include tax lien postponement, bankruptcy protection, and the establishment of trusts and other entities. Working closely with an experienced asset protection attorney is important in order to determine which course of action is best for each particular situation.

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What is an account freezing order and how can it be used in asset protection planning?

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