“Asset Protection” involves protecting assets (including cash, stocks, real estate, etc.) from being seized by creditors or plaintiffs. “Bankruptcy” is defined as a court proceeding in which an insolvent debtor's assets are liquidated and the debtor is relieved of further liability. The passage of the “Bankruptcy Reform Act” changed the way an individual can file for bankruptcy (specifically “Chapter 7” and “Chapter 11”). Therefore, having a solid “Asset Protection Plan” in place while the financial (and legal) seas are calm can be quite beneficial.