If you are concerned about the possibility of losing an asset, then you
may want to review options on how to protect them legally prior to filing
bankruptcy. Most debtors who file either chapter (Chapter 7 or Chapter 13 bankruptcy)
have been able to keep their property after getting a better understanding
of how to do it properly.
There are some aspects to consider in relation to asset protection that
can be reviewed with a legal expert. If you are considering bankruptcy
it is important to understand and know the value of your assets. This
gives a better idea on how it may qualify for exemptions under the bankruptcy code.
Exemptions are legal forms of protection based on equity or value available in an
asset or form or property (house, vehicle, jewelry, bank account, etc.).
Without proper understanding of asset value there is a possibility of estimating
the worth too high. Each state has exemption amounts for different types
of property and if your property amount is higher than the exemption allows,
you may be required to pay the difference to the creditor. The court often
looks at fair market value for assets and there are different options
to help you get a good idea of estimated worth such as an appraisal or
Kelly Blue Book for vehicle worth.
Any assets you have concerns about should be reviewed with an experienced
bankruptcy lawyer in Dallas or Fort Worth. You may be able to discuss
potential courses of action to take to help protect assets prior to filing.
Reference:
http://www.dianedrain.com/bankruptcy-articles/what-is-pre-bankruptcy-planning/