While bankruptcy gets a bad reputation, it is a great tool meant to eliminate debts that have snowballed beyond your control. If you’ve found yourself seriously considering bankruptcy as a means of relief from a heavy burden of debt, you probably have many questions. One of the most common areas of concern and misconception is when it comes to assets.
What is an asset?
Assets can be any property you own, from real estate such as your home or other property to a retirement account, to a car, even including your clothes and dishes. If there is something of great value, a creditor can attempt to collect on that in payment for a debt, such as foreclosing on a house.
Asset Protection By Law
The good news is, in my long history as a bankruptcy attorney, I’ve very rarely seen clients lose any property because bankruptcy law gives the filer protections within a certain value. This is known as an exemption. For property or belongings to be considered exempt, there is a dollar amount that it can be valued up to. When you file, you will list your assets to be exempted. This is so that a filer can continue to have a home and means for maintaining employment. If you’re unsure how to handle filing, you can contact me for a free consultation. I’ll help you assess your situation, and we can determine the best course of action.
Handling Assets Before Filing
Once they learn more about bankruptcy, some people believe they can cheat the system by selling off property to a family member or trying to somehow hide what they have. Of course, I highly recommend against this because these types of transactions are not only illegal but can be discovered, and will not protect the asset. Simply put, you cannot cheat the system. There is a thorough examination of your finances as a part of the process. But if you’re going to file bankruptcy and are concerned about how to protect your belongings, I’d be more than happy to discuss your assets.
Assets After Bankruptcy
There are any number of things that can happen after you file bankruptcy that are important to know ahead of time. If you receive any due funds within 180 days from filing for bankruptcy, these are considered assets. Maybe you receive an inheritance, or a large payment for work done before the filing, even a returned security deposit on an apartment – these things are all considered assets. If you know you are to receive any of these things within six months of your filing, we can discuss that as well.
The bottom line is, bankruptcy is a complex process but could be just the tool you need for a fresh start and relief from overwhelming debt! Schedule a free consult with me to begin your journey toward financial freedom today.