Hello, my name is Marcy. I would like to talk to you about the various ways bankruptcy attorneys help you eliminate debt. My attorney helped me find all of the creditors that I needed to pay back. I was astounded at the number of creditors listed on the bankruptcy. Fortunately, my bankruptcy attorney assured me that my case was completely normal and possible to discharge through the court process. I hope to use this site to reassure others about their debt situation. I will share information about bankruptcy attorney services in an effort to help others tackle this difficult problem.
You should know that you can take some important preparatory steps before filing for bankruptcy that could help you keep more of your assets. You are allowed to do a certain amount of prebankruptcy planning, but you must be keenly aware of the rules of your state to avoid any appearance of fraudulent hiding or shifting of assets. If you are considering filing for chapter 7, read on to learn how you can preplan to get the most out of your bankruptcy exemptions.
For most people, their home is the most important asset they own, and the fear of the loss of a home strikes fear in most all bankruptcy filers. Whether or not you must surrender your home comes down to the amount of equity you have built up and your home's value. Every state provides bankruptcy filers with a certain amount of homestead exemptions, which effectively lower the equity in your home. Your home's equity is what makes it valuable to the bankruptcy trustee. Homestead exemptions, however, are only available to those who have resided in that state for a certain period of time. For those who don't meet the requirements for a homestead exemption, a delay in filing could be prudent.
State Exemptions—Personal Property
In addition to homestead exemptions, every state also provides filers with personal property exemptions. This means that a certain dollar amount of home furnishings and vehicles are not subject to surrender. For example, if your state allows each person who files to deduct a $5,000.00 exemption from the value of their vehicle, you may be able to keep that vehicle if it is worth $5,000.00 or less.
For those who have recently moved to a new state, you may be able to choose which state's exemptions you wish to use if you file within a certain period of time. Not all states allow this, but those that do provide you with an opportunity to file in the state with more favorable exemptions. Timing is crucial, so make sure to observe the grace period in which you may choose the state.
Reorganize Your Assets
If done carefully, you are allowed to sell or use assets that are nonexempt (those that may be surrendered to the bankruptcy trustee), and use the money to purchase certain allowable items that are exempt. For instance, cash in a checking or savings account is almost always nonexempt, but if you use that money for an allowable purchase, you have saved your asset. It cannot be overemphasized that this is an extremely tricky path to tread, so only proceed with reorganization plans on the advice of your bankruptcy attorney. In most states, the asset purchased must be used for a practical reason, such as a vehicle purchase to get to work, and not for luxury items like vacations.
With proper planning, you can help to save some your assets and get started on the way to a better financial future. Contact a bankruptcy attorney like Flippin Thomas C for more information on making the most of exemptions.