Safeguarding Your Assets During Bankruptcy Proceedings

Bankruptcy is a scary word. The process of filing for bankruptcy can be an emotionally fraught one. After all, all your assets are up to the mercy of the court. While the goal of bankruptcy is to give the filer a chance to face the music and get a fresh start, the prospect of losing everything you own is terrifying. But it doesn’t necessarily have to be that way. An experienced bankruptcy attorney will help you navigate each twist and turn of this complex process and help you come out on the other side as intact as possible. Here’s how you can maximize the protection of your assets through bankruptcy.

What Is Exempt From Bankruptcy?

Bankruptcy exemptions allow you to retain specific amounts and categories of property from forced liquidation to pay off creditors. Your bankruptcy attorney will help you utilize these by:

Guiding you through federal and state exemptions: State and federal exemptions are different, and your attorney will help you understand which set applies in your case.
Optimizing the use of exemptions: They will strategize around exemptions to protect as much of your property as possible. An experienced attorney has a thorough knowledge of exemption laws and utilizes this knowledge in creative ways to help you retain any assets possible
Timing advice: Your lawyer will help you take full advantage of exemptions through timing your filing process

Bankruptcy Chapters Matter

Which chapter of bankruptcy you file under is critical to asset protection. Your bankruptcy attorney will help by:

Thoroughly reviewing your assets, income, and debts to choose the best bankruptcy chapter for your individual circumstances
Guiding you through the differences in Chapter 7 liquidation and Chapter 13 reorganization
Helping you navigate the means test to figure out if you are eligible and what other alternatives are

Legally Planning For Bankruptcy

There are legal ways to arrange your finances before filing for bankruptcy. Some ways an experienced bankruptcy attorney can help you include:

Going over your financial transactions in the months leading up to the bankruptcy and pinpointing potential problems that could be framed as trying to defraud creditors
Advising you on how to convert non-exempt assets into exempt ones without raising red flags
Advising you on which debts to pause on so you can save cash for essential expenses or other debts that may be more helpful in the long run

Ways To Protect Your Home and Vehicle

The home and vehicle are essential assets that most people will fight hard to retain. A bankruptcy attorney will help you protect your home and vehicle by:

Detailing how much of your home’s equity you can protect under applicable exemption laws
Exploring strategies such as exemptions, redemption, or reaffirmation agreements to keep your vehicle
Guiding you through continuing mortgage and car loan payments, modifications, or potentially surrendering property if it is the best option

Contact Us Today

There are ways to protect certain assets while undergoing bankruptcy without defrauding creditors. An experienced bankruptcy attorney will help guide you through this process to come out on the other end as intact as possible. Call BCN Law Firm to consult with an experienced bankruptcy attorney today.