Recognizing the Need For A Divorce

Recognizing the Need For A Divorce

Actions To Take Before Your File Your Chapter 7 Bankruptcy

Jackson Robinson

There should be no doubt in your mind before you file that a chapter 7 bankruptcy is in your best interest. Almost everyone who ends up filing for bankruptcy has given the decision plenty of thought before acting. Once the big decision is made, however, you might want to consider the two potential bankruptcy issues listed below. Read on so that you will be fully prepared to file your paperwork and get the debt relief you need.

Choose Your Exemptions Carefully

Most bankruptcy filers know how important exemptions are. They provide filers with an opportunity to keep more of their property away from seizure by the trustee. The more property you own, the more important it is to understand how exemptions work when you have a choice in the matter. In some states, you have the opportunity to choose from either state exemptions or federal exemptions so a careful evaluation of your options will be the key to keeping more property.

If you have recently moved, you may have another choice to make. In some states, you have the choice of using your new state's exemptions or those of your previous domicile. Unfortunately, the right to choose is limited by time, so it pays to take action in a timely manner if you want to have the opportunity.

Rearrange Your Assets

Selling or giving away property has a well-deserved negative connotation when it comes to bankruptcy. That is because it is so easy to make a mistake and end up being accused of bankruptcy fraud. Hiding assets is considered fraudulent because some of the filer's property can be used to help pay off some of their debt to creditors. The bankruptcy courts also prohibit you from selling or giving away property that might be used for that same purpose.

That being said, chapter 7 filers are allowed to move some of their assets around before they file. The rules are strict and narrow, but your bankruptcy attorney can advise you on what you can and cannot do. For example, you are able to use money in a savings account to purchase a car. Since the car may fall into the category of an exempted property, it may not be subject to forfeiture. The money in the savings account, on the other hand, may be seized by the bankruptcy trustee.

Speak with a law firm that offers bankruptcy attorney services to learn more about the above two issues before you file.


Share

2024© Recognizing the Need For A Divorce
About Me
Recognizing the Need For A Divorce

My husband and I had a great marriage for about ten years--that is, until he started cheating on me. I found out about it from a friend, and once I started peeling off the layers of my husband's lies, I realized that we hardly had anything to salvage in the first place. I decided that it would be best to get divorced, but I knew that it would be painful and difficult. This blog is for anyone out there who needs to gather the strength to get divorced. Check out these posts to learn more about the process and how the right lawyer can help.