Asset Protection
Protecting assets from creditors can take place on several levels, the most
important of which are exemption scheduling in the bankruptcy case and pre-bankruptcy
planning prior to the filing of the bankruptcy.
Exemptions
The key to asset protection lies in understanding exemptions, and how they're applied in
actual bankruptcy practice. The term "exemption" means property that is not allowed to be
taken in satisfaction of a money judgment.
An attorney counseling bankruptcy as a course of action is not just considering,
the application of exemptions, but also a choice of forum. Exemptions may also
be applied to property to bar creditor actions without filing bankruptcy.
Generally speaking applying exemptions outside of the bankruptcy process is at
best a stop-gap measure as the application does not force the debt to discharge.
Certain exemptions apply only when a bankruptcy case is filed. The overall
subject of exemptions is complex and requires analyses by an attorney.
Pre-Bankruptcy Planning.
Pre-bankruptcy planning is often about helping clients undue
actions that they have taken in a lay persons attempt to defeat the
rights of creditors in property and assets that they may own. When
a debtor takes actions on their own advice, they often make transfers
that defeat their legitimate exemptions in property in bankruptcy.Pre-Bankruptcy
planning may also involve perfecting unperfected liens, insuring that pensions
are actually in protected accounts and a variety of other financial issues. The
key here is that the planning must be a legitimate financial endeavor to carry out
matters that already exist in the clients financial affairs in a way that minimizes
the possibility of loss of assets. This is a matter that requires the attention
of an attorney skilled in debtor and creditor law.
The Meeting of the Creditors
Every one who files a Chapter 7 or a Chapter 13 bankruptcy case must
attend a court hearing called the "Meeting of the Creditors". This is the time
for the bankruptcy trustee to examine the bankrupt individual concerning the petitions
and schedules that they filed with the court.One of our lawyers represents
you at this hearing. Because of the large number of cases that we have filed we
are thoroughly familiar with each trustee and his particular policies. We
thoroughly prepare for each hearing we attend. As a
result we earn the good favor of the trustee's by making their job easy. It also
means that you don't have to come back a second time and third times for
adjourned hearings.
Bankruptcy Discharge
A bankruptcy discharge provides the individual with financial freedom
that they seek when they file their case. The bankruptcy stay becomes a
permanent injunction at the time of the discharge. No one can collect or
enforce a debt that has been discharged in a bankruptcy proceeding.
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