Asset Protection
One of the most common concerns among individuals who are overcome by unmanageable debt is the fear of losing pensions, IRAs, 401Ks, and other retirement income to creditors looking to collect on past due debts. If individuals file for bankruptcies, most if not all of their retirement assets will be protected from collection by exemptions in chapter 7 filings, and through the halt of collections in other forms of bankruptcy. In general, retirement assets cannot be collected as a means to repay past due debts, but in some cases filing for bankruptcy or other asset protections in the only way to keep these assets safe.
Other assets such as annuities, spousal support, unemployment, and workman’s compensation benefits are also protected by a bankruptcy filing. Making sure to protect assets from collection by creditors helps to ensure long-term wealth and can be an important part of an individual’s long-term financial well-being. Some assets that individuals must take the most care to protect are homes, cars and other related valuables including those necessary to complete a trade. Bankruptcy filings can protect asset types which have no such protections under general collection law and could otherwise be lost to creditors. Although there are limits to the total value of certain exempted assets, exemptions provide significant protection to many pieces of property which might otherwise be seized and sold.
Protecting assets is an important part of filing a bankruptcy and helps to ensure long-term wealth. All unprotected assets within a bankruptcy may be subject to sale and knowing how to protect every possible asset is an important part of filing a successful bankruptcy application. The best way to ensure that all possible assets and possessions are protected is to consult an experienced bankruptcy attorney prior to filing a bankruptcy application.
If you are considering bankruptcy and have questions, we at the Norton Law Offices can help. We are a group of attorneys who each have years of experience helping clients file bankruptcies. For information and to learn more about your options, contact one of our qualified attorneys today.
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