Debtors considering bankruptcy have several options to explore that can help them protect their property. Too often, people get caught up in myths and misconceptions about what happens to personal assets when they file, instead of focusing on how they maximize their exemptions. By conducting some pre-planning prior to your filing, you may be able to protect most, if not all, of your personal property.
- Think about the timing of your filing and how to use it to your advantage. There is state and federal exemptions that help provide protection for personal assets. In some states you may be required to be a resident for a certain time period before you are eligible to use state exemptions.
- Each state varies on exemption amounts and it’s important to follow procedures accordingly to obtain the most protection.
- Consider delaying the filing if you anticipate receiving an asset of value. In some cases, it may be best to wait and file if you are expecting to receive an asset that may be considered nonexempt in bankruptcy.
You’ll want to review exemptions available for your state with a bankruptcy expert. Taking the time to plan ahead and learn how to protect your property greatly reduces potential for repossession and property seizure. It is important to report all assets upon filing to ensure they can be protected in the best way possible. A bankruptcy expert can provide advice on how to legally reorganize assets within reason.