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What You May Not Know About Pre-Bankruptcy Planning

Posted By Allmand Law Firm, PLLC || 22-Nov-2013

What Are My Options When I Can't Make My Payments in Chapter 13 Bankruptcy?

If you are concerned about the possibility of losing an asset, then you may want to review options on how to protect them legally prior to filing bankruptcy. Most debtors who file either chapter (Chapter 7 or Chapter 13 bankruptcy) have been able to keep their property after getting a better understanding of how to do it properly.

There are some aspects to consider in relation to asset protection that can be reviewed with a legal expert. If you are considering bankruptcy it is important to understand and know the value of your assets. This gives a better idea on how it may qualify for exemptions under the bankruptcy code. Exemptions are legal forms of protection based on equity or value available in an asset or form or property (house, vehicle, jewelry, bank account, etc.).

Without proper understanding of asset value there is a possibility of estimating the worth too high. Each state has exemption amounts for different types of property and if your property amount is higher than the exemption allows, you may be required to pay the difference to the creditor. The court often looks at fair market value for assets and there are different options to help you get a good idea of estimated worth such as an appraisal or Kelly Blue Book for vehicle worth.

Any assets you have concerns about should be reviewed with an experienced bankruptcy lawyer in Dallas or Fort Worth. You may be able to discuss potential courses of action to take to help protect assets prior to filing.

Reference: http://www.dianedrain.com/bankruptcy-articles/what-is-pre-bankruptcy-planning/

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