Protecting Assets When Filing For Bankruptcy

In this article, you can discover:

• The consequences of transferring assets with the intent to hide them before bankruptcy,
• The importance of considering the timing and intent of asset transfers, and
• The value of consulting with a bankruptcy attorney before making any asset-related decisions.

Can You Transfer Assets To Protect Them Before Filing For Bankruptcy?

Transferring assets before filing for bankruptcy can be risky, especially if your intent is to hide them from creditors or the trustee. Doing so can lead to fraudulent transfer accusations and potential legal consequences. However, transferring assets as part of an estate plan, such as through a trust, may offer some protection if done correctly and in accordance with the law.

What Factors Should You Consider When Transferring Assets Before Bankruptcy?

When transferring assets before bankruptcy, it’s essential to consider the timing, intent, and the trust’s language if applicable. Bankruptcy courts can look back up to 10 years if you are the beneficiary of the trust. If you’ve transferred assets, it’s crucial to disclose this information during the bankruptcy process and be prepared to cover the value of the assets in a Chapter 13 or Chapter 11 payment plan.

Why Should You Consult A Bankruptcy Attorney Before Making Decisions About Assets?

Before making any decisions about transferring or relocating assets, it’s vital to consult with a bankruptcy attorney. They can advise you on whether the transfer will help or hurt your case and guide you through the process to minimize any negative consequences. Attempting to protect assets without proper guidance may end up causing more harm than good, so it’s essential to seek professional advice.

For more information on Protecting Assets When Filing For Bankruptcy, an initial consultation is your next best step. Get the information and legal answers you seek by calling (847) 440-5998 today.