How to Retain Your Assets

One of the biggest worries that most people have when it comes to filing for bankruptcy is the loss of assets. People assume, incorrectly, that they will lose all of their possessions to the bankruptcy court and will have nothing left. The reality of filing for bankruptcy is quite different, and you may be pleasantly surprised by what you are able to keep, even if you file a Chapter 7 bankruptcy.

Bankruptcy Estate - Riverside County

When you file for bankruptcy in Riverside County, or any other portion of California, your personal belongings and property become part of a Bankruptcy Estate. You are expected to list not only your current possessions, but also some other types of potential income which you may not currently be entitled to have. Ideally, you should consult with your Riverside County Bankruptcy Attorney for full information about what you should disclose and how it should be listed.

The court will appoint a bankruptcy trustee to handle the bankruptcy estate. Depending on the type of bankruptcy you file, the trustee will either sell certain (but not all) of your assets to pay creditors, or will ensure that your repayment plan gives creditors at least as much as they would receive in a Chapter 7 filing. What many people fail to realize is, while some of your assets may be subject to liquidation and sale, this does not mean that the trustee will do so. In many cases, the cost of moving, storing, or placing the item for sale is outweighed by any potential value the item might have. In these instances, the trustee will not sell your property, and you will be free to keep it. Bear in mind, if you have a lot of very expensive items, you may lose some of these to bankruptcy liquidation, but there are still ways to keep some property that might not be exempt from the liquation process.

One thing you should not do in any bankruptcy proceeding is to attempt to transfer property ownership, sell nonexempt items, or perform any other financial transactions in an attempt to shelter your personal property, longings, or state. If you do so, the bankruptcy trustee can and often will file a motion to have your bankruptcy dismissed. Even if your bankruptcy is not dismissed, the items that you sold or the property that you transferred can be reclaimed and liquidated as part of the bankruptcy estate. What is and what is not allowed 10 be confusing, this is why it's so important to have an experienced Riverside County Bankruptcy Attorney working with you during your case.

Riverside County Bankruptcy - Exemptions

Some types of property are exempt from liquidation in a bankruptcy proceeding. This means that they cannot be sold, even if you have nothing else of value that could be used to pay off your creditors. A portion of your equity in your home, and your car, as well as certain tools that you may use in your business, are exempt from being sold - this means that you could potentially file for bankruptcy, and keep your house, your car, and professional equipment, providing certain conditions are met. You will need to remain current on your mortgage and car payments, and you may need to reaffirm the debt. However, a skilled Riverside County Bankruptcy Lawyer will be able to help you navigate these options and come up with the best plan based upon your needs.

California has two sets of exemptions that you can choose from, and there are different provisions for each, so it is important that you fully understand which will benefit you most. You cannot use provisions from both exemptions, you must choose one or the other - this is where an experienced Riverside County Bankruptcy Attorney can make all the difference in your case. We will review the current exemptions, and compare them to your unique circumstances in order to advise you as to which type you should use during your bankruptcy case. In this way, you can maximize your exempt property while still fulfilling your obligation to your creditors in the bankruptcy proceedings. If you are facing bankruptcy, and aren't sure what options are best for you, please contact us today. We can arrange for a free initial case evaluation to help you understand Riverside County Bankruptcy Law and how to put the laws and protections into place in a way that works for you.