If you intend to file for bankruptcy protection, you should consider how you would do so. You see, if you plan it right, you can save yourself a princely sum of money. Planning ahead includes taking a number of important steps to ensure you complete the process faithfully to the best of your knowledge. The two most important things to achieve in bankruptcy is firstly to have your case approved by the bankruptcy court and secondly to obtain a favorable outcome for your case.
In this regard, it’s important to receive information and guidance from a qualified bankruptcy lawyer. Your lawyer will tell you the do’s and don’ts before filing your bankruptcy petition. For example, you should not wantonly charge expenses to your credit card at least 12 months before you file for bankruptcy. Likewise, you should not transfer any assets to another family member during that time period either. These actions may be interpreted as bankruptcy fraud and could jeopardize your entire case.
Once your bankruptcy petition is successfully filed, your bankruptcy lawyer should advise you on the exemptions you may be entitled to. Exemptions are assets that are protected from being sold off to pay your debts. Typically, these are assets such as your primary residence and vehicle. In some states, the location of the residence makes a difference. For example, in Texas, your home of up to 10 acres can be exempted if it is situated in an urban area but if it is in a rural area, the exemption applies to a primary residence, including surrounding land, of up to 100 acres.
In view of this, one of the steps you might want to consider taking is living in a rural homestead to have more of your assets protected. So if personal bankruptcy is something that you may consider in the years ahead, it may be wise to be prepared for every contingency and plan for how to best shield your assets. Call us at (813) 200 4133 for a free consultation on how bankruptcy can protect your assets from your creditors.