At Woodruff Law we understand that bankruptcy is a major step in your life. Hundreds of clients have placed their trust in our law firm. With this level of bankruptcy experience, we know that proper planning for bankruptcy can protect your assets and maximize your debt relief. Before you file for bankruptcy, there are a number of steps you should take.
Take inventory of your assets: First, when filing bankruptcy, you are required to fully disclose all of your assets and debts. Taking inventory of what you own helps in this regard. Secondly and most importantly, certain classes of assets cannot be taken from you to satisfy your creditors. If you understand which of your assets are and are not exempt, you will have a greater understanding as to which type of bankruptcy is best for you and your interests.
Find out which of your debts are secured and which are unsecured: Secured debts are those debts that are backed, or secured, by collateral. Your home and your car are examples of secured debts. Unsecured debts are not backed by collateral. Typically, credit cards and medical bills are unsecured debts. Secured debts are not discharged in Chapter 7 bankruptcy unless you decide to surrender the collateral, such as a vehicle or home. Most unsecured debts are dischargeable. The nature of your debts will have a great impact on the type of bankruptcy you file.
Continue to make contributions to your 401(k), IRA, or other pension plans: These assets are generally exempt from bankruptcy with certain exceptions. Therefore, in most instances, any money you place in these accounts cannot be taken by the bankruptcy trustee.
Act sooner rather than later: The earlier you plan for bankruptcy, the more options you will have that provide you with more leverage against your creditors. Planning for bankruptcy includes hiring a knowledgeable and experienced lawyer. Woodruff Law provides invaluable counsel during this time.
When you work with Woodruff Law, we will help you get the debt relief you need the first time. We offer a free initial consultation to discuss your finances. Call our office at 770-565-7924.
