Ways to Protect Your Assets During Bankruptcy

Businessman going bankrupt

One of the most tragic things that could happen during a bankruptcy is when a defendant loses his assets. These assets, which could be used to pay off debt, may come in the form of money, properties or investments. Thankfully, there are ways for you to protect your assets. Here are some ways you can shield your assets from court intervention during bankruptcy.

Get a bankruptcy attorney

A competent Chapter 13 bankruptcy attorney in Salt Lake City is your first line of protection. These attorneys have the knowledge and expertise to defend your best interests and provide you with possible solutions to your financial problems. If the worse comes to worst and you lose the case, your lawyer should have already advised you on investing assets in bankruptcy exemptions.

Pay off mortgage

Some states protect your personal properties by exemptions. A few allow owners to keep their houses or at least a portion of it during bankruptcy.

Invest in college accounts

If you have kids, this may be the perfect time to invest in their college education. Some fund accounts for this purpose are protected from bankruptcy. However, it depends from state to state so you will have to check on the availability of this option for you.

Fund retirement plans

Most retirement plans also have a protection cap. Because of this, the money that you have will be protected from bankruptcy courts. Just make sure that you consult with your lawyer about it.

At the end of the day, so much can be said about the harsh conditions defendants experience when losing a bankruptcy case. However, if you play it smart and you prepare ahead, you may be able to protect some of your assets.