Pre-Bankruptcy Planning Explained

Pre-bankruptcy planning can be extremely important in protecting your assets during your bankruptcy case. This can be done by transferring non-exempt assets into exempt assets, a process that is specifically permitted in the Bankruptcy Code legislative notes. However, it is important to have a qualified attorney who is familiar with what is proper and legal pre-bankruptcy planning, as well as exemption planning.

Pre-bankruptcy planning can be very tricky and detail oriented. Attempting to accomplish asset restructuring without the help of a knowledgeable can result in irreversible damage to your case and allegations of fraud. This can lead to litigation against you and possibly anyone you transferred assets to during asset restructuring.

While Bankruptcy laws allow for pre-bankruptcy and exemption planning, there is always some level of risk involved. Generally, the larger and quicker the restructuring of assets is, the greater the risk. These risks include loss of assets, certain debts declared as non-dischargeable, loss of bankruptcy discharge, and even criminal liability.

Unlike large “bankruptcy mills” that crank out as many bankruptcy filings a day as possible, Zimmermann Law Offices takes the time to analyze each case individually and tailor pre-bankruptcy planning to each case’s unique needs. The attorneys at Zimmermann Law Offices are dedicated to ensuring you keep all your assets allowed by law.