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 legally keep your property
during and 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.
Reference:
http://thealternativepress.com/articles/protecting-your-assets-in-bankruptcy