I. How will Jia Yueting be affected by the asset freeze?
The assets' profits will be eroded; after the assets are frozen, they cannot generate corresponding profits, and the assets will naturally depreciate in value. At present, if Mr. and Mrs. Jia Yueting find a way to solve the immediate crisis, it is estimated that they will not see such a situation.
What is more serious than the asset freeze is that Jia's personal credit reputation is seriously damaged. It is very difficult for a person whose assets have been frozen to secure assets and borrow money from banks in the future by virtue of his personal reputation. This is very fatal for Mr. and Mrs. Jia.
Stock price! The loan crisis of the LeTV system is likely to trigger panic in the stock market and a sell-off, affecting stock price volatility. Keeping the quality business of the listed company to continue to operate soundly is what Jia hopes for, although the possibility of him personally losing the controlling stake in Leshi is increasing. However, if no more funds are introduced to the LeTV system, the current crisis of loan arrears cannot be lifted, and it is estimated that LeTV will not be able to do it alone when the whole body is moved by one hair.
From the court's freezing of 1.237 billion assets of Jia and his wife, the debts guaranteed by Jia Yueting have been implicated to the family; Jia Yueting and actress Gan Wei have 3 sons, and the older twin sister is currently only 2 years old, and the second child is even younger, less than one year old. Assuming that Jia did not have this crisis, the children's future would have been well-fed and carefree; but now that their careers have failed, their assets have shrunk significantly, and they may be burdened with huge debts, how should this family face such a gap? Especially for the young children.
How can entrepreneurs segregate family and company debts?
Jia Yueting's case warns us that entrepreneurs must do a good job of segregating family and company debts! Large insurance policies can do the relative "isolation" of debt, the reasonable use of large policies, indeed, can help entrepreneurs to preserve part of the family assets.
Article 32 of the Insurance Law provides that: no unit or individual shall unlawfully interfere with the insurer's obligation to compensate or pay insurance benefits, nor shall they restrict the right of the insured or beneficiary to obtain insurance benefits.
This law regulates the process of paying insurance compensation.
Look at a case.
Due to the company's working capital needs, Mr. Wang borrowed $1.6 million like a bank, which was overdue to be returned. Before the debt occurred, Mr. Wang bought his wife a high-value life insurance policy with her as the insured for $1 million, and formulated their child, Xiao Wang, as the sole beneficiary. And shortly thereafter, the wife died in a car accident and the son obtained a $1,000,000 life settlement.
Question: Can the bank apply to the court to enforce this insurance settlement?
The answer is no. This is because the debt had not yet been incurred before the entire policy was purchased. If the bank cannot prove that Mr. Wang has transferred his property in bad faith to the detriment of his creditors, this insurance contract is valid. According to Article 32 of the Insurance Law, no entity or individual may illegally interfere with the insurer's obligation to compensate or pay insurance benefits, nor may they restrict the right of the insured or beneficiary to obtain insurance benefits. This money can only be eventually returned to Wang, does not belong to the assets to settle debts.
Insurance can be done accordingly to avoid debts, there are several "prohibited areas".
The following circumstances, the insurance contract is considered invalid, these scenarios include.
1, malicious collusion, to the detriment of the state, the collective or third party interests of the contract, such as the purpose is the malicious avoidance of debt insurance.
2、Contracts where the legal form conceals an illegal purpose, such as those used for Chang Yi property or money laundering.
3, contracts that damage the public interest of society, such as the funds of the contract to shareholders, executives, etc. to buy high investment-type insurance, a channel to transfer company assets, malicious avoidance of corporate income tax and personal income tax.
In addition, the ability of insurance to avoid debt is also about the design and structure of the policy. Here are a few choice points for reference.
1, the choice of policy beneficiaries; if the consideration of future liabilities will have an impact on the family, when buying insurance, its beneficiaries are preferably children; spouse as the subject of joint liabilities, its insurance benefits have the possibility of being paid off.
2, choose people with low liabilities as the policyholder; if individuals bear more debts, parents can be insured as the policyholder, the beneficiary is the child, when buying a policy in the name of parents, if there are more siblings, you also need a gift agreement attached to avoid future disputes.
Risk warning: investment has risks, choose carefully. This article is for knowledge sharing only and does not constitute any investment advice. No commitment or guarantee is made to the accuracy and completeness of the content. Anyone making investment decisions based on it does so at his or her own risk.