Protect your otherwise unprotected asset(s) by flexibly paying to do so under Chapter 13. Maybe you wonât even need to pay anything extra.
Most people can file Chapter 7 and not lose anything because everything they own is “exempt.” But what if something of yours isn’t?
Last month’s decision in Clark v. Rameker affects millions, if not billions, of dollars in IRAs.
Almost all forms of retirement are protected. Inherited ones aren’t, unless you are the spouse, or maybe if you live in the right state.
Some debtors can, but others cannot, choose between the federal and state exemptions. That’s because of a major political compromise.
An Individual Retirement Account no longer consists of “retirement funds” once it is transferred to a beneficiary. So it’s not exempt.
You may have assets not protected by the property exemptions. If you owe recent income taxes, surrender the assets so the taxes get paid.
Financial wisdom says you should set aside money for 3-to-6 months of living expenses. You can do this even before filing bankruptcy.
Bankruptcy focuses (for most purposes) on assets you own as of the moment of filing. So consider using up unprotected assets before then.
One strategy to prevent the loss of asset value in bankruptcy is through very cautious conversion of unprotected assets into protected ones.
By filing your bankruptcy after applying appropriate asset management strategies, you can save your assets and pay the right creditors.
This Thanksgiving, we have much to be thankful for among the basketful of benefits provided by the bankruptcy laws.
Chapter 13 can be the best way to protect assets. All the more so if you are led there for other reasons, especially for “priority” debts.
You don’t necessarily need Chapter 13 to protect an exposed asset. The bankruptcy trustee in Chapter 7 is usually willing to do a deal.
Bankruptcy can take care of your vehicle debt in many ways. Here are a baker’s dozen–13–of them.