The sad story of Broke Barry shows how easy it is to waive asset protection by signing personal guarantees and secured loans.

Don’t waive your asset protection goodbye. Don’t be like Broke Barry! Barry operated his business in an LLC that protected his personal assets, and all the equity in Barry’s home was protected by the state’s homestead exemption. Barry waived the protection of his business entity by signing a personal guarantee demanded by a certain supplier. Barry waived his homestead exemption by signing a loan secured by equity in his home. The supplier sued Barry, won a judgment against him, and seized his personal assets to pay the judgment. When Barry failed to pay his loan, the lender foreclosed on his home. You can blow your asset protection, no matter how carefully it’s been constructed. People lose their asset protection by signing guarantees and secured loans. Do whatever you can to preserve your exemptions and benefit from your protective structures. Don’t waive your asset protection like Broke Barry!