The single most difficult decision in your life
has to be the decision to apply for bankruptcy protection. Once you
have filed for bankruptcy, the bankruptcy record stays with you for up
to 10 years. Your options can be limited because you have filed for
bankruptcy, even though legally you should not be discriminated
against. Since you cannot control other's perception of you after you
have declared bankruptcy, you should try to safeguard the things under
your control, such as your assets. Prior to filing bankruptcy, you
should review with your lawyer what assets you can hold through the
exemption code and maximize this list of assets as much as possible.
Here are some of the line items that you should consider before filing
for bankruptcy:
Do not reassign assets to someone else
Just because you have given away the ownership of
the assets to someone else, it does not mean that the bankruptcy court
cannot go after the questionable assets. If you try to sign away your
asset and the bankruptcy finds evidence of such wrongdoing, you are
liable of committing bankruptcy fraud. Bankruptcy trustee is there to
verify that the information in the bankruptcy petition is precisely
represented. Do not cheat the bankruptcy system. Hiding or transferring
assets is a big felony and your case can be tossed out of court. You
have essentially committed fraud if the bankruptcy trustee proves that
you have been trying to hide specific assets from the creditors. If the
bankruptcy judge finds that you have committed fraud, there is a good
probability that your bankruptcy case will be dismissed.
Your assets can be legally protected using the
bankruptcy exemption rule
Every state has its own bankruptcy exemption,
please double check with your bankruptcy attorney. Everyone would want
to protect as many assets as they can in the bankruptcy process, so
make sure that you consult your bankruptcy attorney on the specifics of
your state's exemption rule. As part of the pre-bankruptcy planning,
consult with your lawyer to make sure you have lawfully protected your
assets. Once the asset has been declared as exempt, it is sheltered
from the bankruptcy trustee who is looking to retrieve any non exempt
asset for the sake of selling it to pay off the creditors. Assets such
as cars, 401(k) or any retirement plan, your favorite stamp collection
can be classified as bankruptcy exemption in one shape or another.
Since the bankruptcy exemption rule is state specific and quite
complex, you should talk to a qualified bankruptcy attorney about your
options.
Your bankruptcy lawyer should know every detail
of your finances
Some people try to hide assets from their own
lawyer in the hope that the bankruptcy trustee will not find these
assets. Do not hide anything in your bankruptcy petition. You are
better served if you can list everything from assets to liabilities. Do
not have the wrong idea that if you don't list the asset, it will not
be found. It is not worth it to commit fraud by hiding the assets from
the bankruptcy court and then have your case dismissed.
In short, do not think it is illegal for you to
keep the assets you have after you have filed for bankruptcy. Your best
bet to keep all the assets legally under the bankruptcy law is to
consult with a bankruptcy lawyer. Finding that right
bankruptcy lawyer can help you exit the bankruptcy procedure
unscathed. For additional information on bankruptcy, please visit ToFileBankrutpcyOrNot.com.
Article Source: http://www.articlesbase.com/personal-finance-articles/
ways-for-you-to-safeguard-your-assets-before-filing-bankruptcy-
2871855.html About the Author
Steve Sanchez has recently overcome the economic
depression of 2008-2009 by declaring bankruptcy. Even though bankruptcy
has devastated Steve financially and emotionally, Steve has rebuilt his
businesses in the last 6 months and he has not looked back since.
One of his project is to educate people on bankruptcy. Having gone
through the ordeal himself, he has first hand knowledge of the pros and
cons of filing for bankruptcy protection. Please visit his site
http://ToFileBankruptcyOrNot.com if you want additional information
regarding bankruptcy. | 