Pre-Bankruptcy Planning

: Chris Lee Law Firm

  Filed under: Filing Bankruptcy

bankruptcy preplanning
If you are concerned about losing an asset, you might want to consider protecting your assets before filing for bankruptcy. This is one form of pre-bankruptcy planning.
Most debtors who file for Chapter 7 or Chapter 13 bankruptcy manage to keep their property after understanding this process.

It is crucial to understand how to value your assets entirely correctly. This way, you will have an idea of how it may qualify for exemptions under the bankruptcy code. Each state has exemption amounts for different types of property. If you overestimate an asset, you may be required to pay off the difference to the creditor. If possible, all your assets should be reviewed by an experienced bankruptcy lawyer in your state; this will allow you to protect your assets before filing for bankruptcy.

Avoid Fraud

Getting advice from a qualified bankruptcy attorney will help you stay out of trouble, and your actions being mistaken for fraud. In your case, the trustee will evaluate all of your actions regarding your assets over the prior two years before filing. If you attempt to hide assets, your case will be dismissed, and you may face criminal charges.

Be careful not to make large credit purchases just before filing bankruptcy, the court will more than likely not include these purchases in your bankruptcy, and you will be responsible for paying the debt.

Waiting to File

Other reasons to plan your bankruptcy would be if you are expecting a hefty bill to come in soon, medical debt is the most common large bill that shows up after a month or so after treatment. By postponing your bankruptcy, you will be able to include your creditors’ large debt to have your debt discharged.

If you are about to file for bankruptcy, you may want to stop making payments to creditors whose debts are likely to be discharged. Making payments for these creditor’s debts right before filing will be a waste of money. You will be facing other essential payments such as your mortgage, alimony, or child support.

Talking to an experienced Plano bankruptcy attorney will help you plan your bankruptcy for the best outcome possible.

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