Planning For The Possibility Of Bankruptcy
At Linda Bal & Associates, we counsel clients on how to protect their assets from creditors and from bankruptcy trustees. By fully analyzing each client’s situation, we can determine what property can be kept and what is likely to be sold. If necessary, we try to schedule bankruptcy filings so that there are no concerns about fraudulent transfers of assets.
With the advice and guidance of our Naperville asset protection attorneys, you may be able to keep a significant portion of your assets whether you file Chapter 7 or Chapter 13 bankruptcy.
Protecting Assets Through Exemptions
Illinois law prevents people from losing everything in lawsuits filed by their creditors. Certain types of property are exempt from seizure. The bankruptcy courts use the same exemptions to allow people to keep important items rather than allowing everything to be taken and sold. Certain types of assets can be kept, while others cannot.
What Can You Keep In An Illinois Bankruptcy?
Under Illinois law, there is a homestead exemption of $15,000. This means, essentially, that you get to keep the first $15,000 of equity in your home if you file bankruptcy. If you have more equity than that, it is possible that your home could be sold, you receive $15,000 and the rest is used to pay debts.
Cash and stocks can be lost in bankruptcy. Putting that money into a life insurance policy or annuity is a way to secure it. A car is safe up to $2,400 in value. Tools of trade up to $1,500 are protected and miscellaneous personal property is secure up to $4,000.
Can You Transfer Assets As A Gift?
If you give away assets, make sure you get advice from our Naperville lawyers first. Assets you give away without adequate compensation in the 12 months prior to filing bankruptcy could be problematic. The gift could be considered a fraudulent transfer. The bankruptcy trustee could void the gift, recover the assets and sell them to pay debts. Therefore, any gift-giving should be planned far in advance of bankruptcy.
Contact Us To Learn More About Protecting Your Assets In Bankruptcy
To learn more about how to protect your assets in bankruptcy proceedings, please call Linda Bal & Associates at 630-912-5970 or toll free 800-599-2152. You can also contact our law firm online. Your initial lawyer consultation is free.