One of the most common fallacies that business owners have is that if their business is Private Limited, they have no worries over personal bankruptcy thinking that the worst case scenario is the loss of their capital in the firm. I do not know who was the one who started this fallacy. But this fallacy actually appears in many financial planning textbooks. I don’t know how many countless financial planners advised their clients incorrectly by following what the textbooks say. In reality, creditors are not dumb. They can sue the individual directors and officers. If a business loan is required, they can require the individual directors/officers/shareholders to become personal guarantor. If this is the case, where is the protection? This article that appear in Bloomberg website: Wealthy Americans Turn To Trusts To Shield Assets indicated that many businessmen is turning to use trust as a way to shield one’s assets ......