Bankruptcy is all about helping an individual(s) resolve debt and learn better financial management. Getting a fresh start is not just about leaving the past behind but it also requires someone to protect the assets they still have. You can maximize the benefits of this by NOT borrowing, selling or getting rid of these assets before you file for bankruptcy.
All too often, bankruptcy attorneys meet clients who have taken desperate measures in order to stay afloat with mountains of debt. They operate under the belief that they will lose their assets after filing bankruptcy. However, the truth is, that it can be harder to recover from bankruptcy if you don’t have the basics, such as a home, car, retirement accounts, unemployment benefits, tools of your trade and so on.
A lot of times bankruptcy will provide protection for your assets. Straight bankruptcy (Chapter 7 filing) will protect “exempt” assets which means people filing for this type of bankruptcy will be able to keep much of what they own. Assets that have a higher value than what is exempt by law can be kept by “an adjustment of debts” under Chapter 13 bankruptcy for items that are non exempt. To develop a plan to protect these assets, obtain an experienced attorney.
Bankruptcy Can’t Bring Back What Has Already Been Lost
Although bankruptcy can provide protection for what you currently own, it cannot bring back what you may have already lost before you filed for bankruptcy. Things that have been spent, sold or borrowed against to avoid financial disaster could have been saved if bankruptcy was filed beforehand.
Most people facing bankruptcy don’t realize the consequences of borrowing, selling and spending or that their assets may be protected under law. An experienced attorney can help place you in the perfect position for filing bankruptcy.