If you are going to file for bankruptcy, you may have just one chance to get it right. You want to:
- Claim the exemptions that are best for you and use the exemptions to your greatest benefit
- Have the greatest possible amount of discharged debt
- Avoid delays caused by errors and omissions
- Most of all, you don’t want your filing to be rejected by the bankruptcy court.
For this reason we offer these tips on preparing for bankruptcy:
Marietta Pre-Bankruptcy Planning Attorney
Brian Limbocker will go over your financial situation with great care, examining your income, the value of all your assets, your loans and other outstanding bills.
Preplanning is anticipated and allowed in the bankruptcy laws. There are certain things you should definitely do before filing:
- You should maximize your allowable exemptions. Some assets are exempt from inclusion in your assets. Our firm can advise you on how to take advantage of Georgia bankruptcy exemptions.
- You should maximize your retirement contributions. Your IRA or 401(k) accounts are exempt. Every dollar you can store in these accounts is a dollar your creditors cannot take.
Woodstock Bankruptcy Pre-Filing Lawyer
Certain situations have the potential to delay or interfere with debt discharge. Some of these situations include:
- You have a divorce pending. It is usually preferable to discharge unsecured debts before divorce — that way, neither party has to deal with them after the divorce. Occasionally there are reasons to file after the divorce. Our office can advise you on these circumstances.
- You plan to retire. Many individuals facing retirement opt to file for bankruptcy in order to retire their debts as well. Shedding unpayable debt is one way to make it on Social Security and savings.
- You have paid off preferred creditors. If you have made payments in the last 90 to 365 days to creditors you wanted to save from debt discharge — usually friends and family members — you may want to hold off on filing. Bankruptcy Court may see these payments as fraudulent conveyance and make you take that money back.
- You have unusual recent spending patterns. If you bought a lot of things or expensive things or took cash advances within 60 days of filing, the court may rule these debts are not dischargeable. You may be advised to delay your filing.
Protect Your Assets · Know What You Are Doing
Advance planning lets you maximize your exemptions and get your financial situation in order so that you are in a good position when you finally file. Preplanning can be complicated, and one applicant’s list of to-do’s is not always right for others.
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