asset seizure
Definition
Asset seizure is when a government authority or court legally takes away your property or money, usually because they believe it was connected to a crime or you owe a debt you have not paid. This can happen to business bank accounts, equipment, vehicles, inventory, or real estate. The government does not always have to prove wrongdoing before seizing your assets, which makes this one of the more alarming legal powers that exists.
Example
If the IRS determines your business owes back taxes and you have ignored their notices, they can seize your business bank account and drain it to cover what you owe. In criminal cases, authorities might seize a delivery truck they believe was used to transport illegal goods.
Watch Out
Civil asset forfeiture laws in many states allow authorities to seize your property even before you are charged with a crime, so staying current on taxes and keeping clean business records is your best protection.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.