Filing for bankruptcy can help you keep your assets legally without having them seized by creditors to satisfy an outstanding balance or past due debt. Yet, some who file think they need to hide or withhold information about their personal property in order to retain it. This action may lead to bankruptcy fraud charges, hefty fines and imprisonment. You can easily avoid hiding details by being honest before you begin the process. Being honest about your situation allows you to take advantage of legal processes that can provide the protection you need to keep your assets worry-free. Here are a few tips in gaining a better understanding on legal property protection in bankruptcy.
Know what assets can be protected when you file. Many people who attempt to hide their possessions don’t realize there are a number of exemptions available to help you keep your property legally during or after the filing process. But, the key here is to know what you can protect and how much of its value. Common assets bankruptcy helps protect include homes, vehicles, jewelry, retirement accounts, personal banking accounts, insurance policies, and more. A number of business assets may also be protected if you file as a business owner.
Review what exemptions are available in your state. Each state has a number of exemptions available for various assets. Understand how much protection the exemption offers for the asset in question. There are exemptions available at the federal level that may provide additional protection.
Fully disclose your property and assets with your attorney or trustee. Even if it is something you are expecting (tax refund, proceeds from a will, or compensation from a legal judgment), you have the opportunity to review protection options before receiving the property. Taking time to review potential advantages may give insight on how your case can be resolved efficiently.
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