Protecting house from US creditors

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sosua10

New member
Jan 17, 2010
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I am a US resident and own a house in the DR through a Dominican corporation. The house is the corporation's only asset. I have a Dominican wife who lives in the house, but at present I am the sole owner of the corporation.

Is there any way for me to protect this asset from US creditors in the event of a bankruptcy or judgement against me? Just curious.

thanks.
 
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RonS

Bronze
Oct 18, 2004
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The corporation is a legal entity, separate from you, the individual, and 'shields' the assets from your individual creditors unless the corporation is itself a co-debtor or co-signator. Your personal liabilities are not the liabilities of the corporation. The shares of the corporation that you own, however, are your assets and, like your other assets, are subject to lien or liquidation in a Chapter 7 Bankruptcy, and thier value included as part of your estate.
 
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sosua10

New member
Jan 17, 2010
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RonS said:
The corporation is a legal entity, separate from you, the individual, and 'shields' the assets from your individual creditors unless the corporation is itself a co-debtor or co-signator. Your personal liabilities are not the liabilities of the corporation. The shares of the corporation that you own, however, are your assets and, like your other assets, are subject to lien or liquidation in a Chapter 7 Bankruptcy, and thier value included as part of your estate.
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Understood. Is there a way to secure the house since it is the principal residence of my spouse?
 
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RonS

Bronze
Oct 18, 2004
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I'm not sure about that. The fact that the house is the principal residence of your spouse really doesn't matter, as it is an asset belonging to the corporation. The corporation can transfer title to your wife and children, if you have any, although I am not certain about whether transfers made within a year of a bankruptcy filing will be recaptured as an asset of the debtor, particularly given the corporate shield that exists for the house. You really should consult with your bankruptcy lawyer on this. If you don't file bankruptcy, I doubt creditors will go so far as to execute judgment(s) on the shares of your Dominican corporation and then sell the house to pay off the liability. That just sounds like a lot of time and expense that they would rather not hassle with. But again, you really should consult with your attorney.
 
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zoomzx11

Gold
Jan 21, 2006
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No worry

The house is safe. The DR corp shields the house. Even without the corporation you are safe as its just not worth it to come down here and deal with the Dominican Court system. The only other consideration would be if you made some very very wealthy entity really really angry and they dont mind throwing lots and lots of good money after bad just to get back at you. You can relax.
 
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sosua10

New member
Jan 17, 2010
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zoomzx11 said:
The house is safe. The DR corp shields the house. Even without the corporation you are safe as its just not worth it to come down here and deal with the Dominican Court system. The only other consideration would be if you made some very very wealthy entity really really angry and they dont mind throwing lots and lots of good money after bad just to get back at you. You can relax.
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Can you elaborate on how the DR corp shields the house?
 
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