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Successful Pre-Bankruptcy Planning
What Is Pre- Bankruptcy Planning? This typically is done by evaluating the timing of your filing. There are some reasons why you might want to plan when to file is to legally move assets around or wait until your income best reflects your current situation.
The process of converting non-exempt assets to exempt ones is one aspect of pre-bankruptcy planning. Typically, exempt property is a property that gets protection from the seizure and liquidation. The Bankruptcy Code allows this type of activity if it’s done by the rules, but it is best to check with a bankruptcy attorney so you don’t find yourself guilty of fraud.
It is always a good idea to consult a bankruptcy attorney
Commonly, 90% of the bankruptcy cases need representation by a lawyer due to prospective candidates lacking knowledge. The court encourages qualified legal representation for every petition to ensure a smooth transaction.
Activities Before Filing Bankruptcy
All your credit card transactions in the prior six to 24 months before your filed bankruptcy will go under examination. You may also welcome problems if the creditor claims that the debtor was insolvent while making purchases and never intended to pay the money back.
Other Reasons for Pre-Planning
Suppose you have just finished a temporary job or seasonal employment, and you will be unemployed in the foreseeable future. In that case, you may want to wait up to six months so your income average will be lower, giving you a better chance of getting all of your qualifying debt removed.
Another reason to wait is if you know you have a large bill, such as a medical bill, coming in the mail but are not sure when it will arrive. Once you file bankruptcy and fill in your creditors’ names and amounts owed, you want to try to include all of your debts the first time correctly.
Bankruptcy endows petitioners with a chance to wipe out the debts and begin a fresh new financial life. By delaying the process, you can lose your wages, home, or vehicle. So, when you feel you are unable to handle the debts, contact a Sacramento bankruptcy attorney.