In few years time, you will get your full retirement plan and would spend it to something “big” which will sustain you ’til the last day on earth. As early as now, you might have something or an idea running in your mind about the “grand” plan. What is it? Is it a business? Is it a house by the beach? Or is it both a small business and house?
Even I dreamed of having my own good things when I would retire. I really wanted everything will go smooth when that time comes. But what if the opposite happens? We have to admit that the future is full of surprises. Don’t be surprise when one day, you’ll wake up and finds out that your small business is heading the bankruptcy path. Oh no!
In cases when filling for bankruptcy is an inevitable event, it is better for you to know that you can still protect your assets even when you are at the verge of being bankrupt. “Okay, good!,” you can say that. So how can you protect your assets in bankruptcy?
The U.S bankruptcy law consents a debtor filling for bankruptcy to save those assets which are deemed necessary for him to make a new start after the bankruptcy is complete. These assets are basically excused from bankruptcy proceedings. Moreover, bankruptcy can truly protect your property or assets from creditors because they cannot place liens on your assets or attempt to seize them.
Here are some tips on how to protect your assets in bankruptcy:
- List all your assets and liabilities when filing for bankruptcy.
- Know your state’s exemption limits.
- Identify any property that you want to protect as exempt.
- Wait and response appropriately to any contests from creditors.
- Seek a professional advice from a bankruptcy lawyer.
Always keep in mind that bankruptcy is not all negative. There’s always an exemption to any event and bankruptcy is not exemption. Now that I’ve given you the basic things to do in bankruptcy, you might want to know more about it. Get on your shoes and check out the specifics of each item listed.