Kentucky Bankruptcy Law

Counsel with Care

Things to be aware of if facing bankruptcy 1

Over the next weeks, I plan to write many short posts giving a large number of “don’ts” to be aware of if you are contemplating bankruptcy. This first one really is for folks who have already decided they have to file bankruptcy. Be sure to provide your attorney with EVERY bank account with you name on it; don’t leave out any bank accounts.

Sometimes they get left out because the balance is so small that people think that account does not matter. Other times, rarely I think, they are left out because the debtor is worried about keeping a little bit of money tucked away that they won’t lose.

The danger in leaving accounts out is that if a trustee gets wind of it, you could get kicked out of bankruptcy without hope of getting a discharge. The reason it is not worth doing this is because Federal exemptions are pretty generous. I have rarely come across a debtor that could not exempt all their assets including cash on hand in bank accounts; nearly everyone I have helped through bankruptcy has ended the case with all the assets they started it with.

Furthermore, if you have so much in an account that it cannot be exempted, your attorney should know about it up front so that they can help you with legitimate pre-bankruptcy planning.

Advertisements

September 18, 2013 - Posted by | Bankruptcy, Chapter 13, Chapter 7, Exemptions, Planning, Pre-filing planning | , , , , , , , , , , , ,

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: