If planning to file for bankruptcy, it is important to speak with a bankruptcy lawyer as soon as possible to learn how to protect assets. There are many pitfalls people can find themselves in when filing for bankruptcy without first consulting with a Tampa bankruptcy lawyer. For instance, when preparing to file there may be temptation to transfer ownership of assets to protect them. However, transfer of title won’t necessarily protect assets from the reach of the court. Moreover, this type of action can result in devastating consequences. Therefore, it is highly recommended to consult with a Tampa bankruptcy lawyer for assistance with how to protect assets from bankruptcy before you file for Chapter 7 or Chapter 13 bankruptcy
How to Protect Assets From Bankruptcy Without Concealing Assets
Often, debtors will assume the answer for how to protect assets from bankruptcy is to hide their assets. Obviously, this is not recommended and is a violation of bankruptcy law. In fact, one of the most common forms of fraud associated with bankruptcy is the concealment of assets. This includes transferring title of property and other assets to third parties. See Bankruptcy Law 11 USC 548.
The amount of time a court can look back at transferred property, to consider such property for fraud during a bankruptcy case varies. This is one of the many reasons why it is important to consult with a bankruptcy attorney in Tampa if you believe bankruptcy may be in your future. The best method for how to protect assets from bankruptcy will vary from case-to-case. A bankruptcy lawyer in Tampa can help you formulate a plan to protect your assets without engaging in fraud.
How to Protect Assets From Bankruptcy Without Fraudulent Transfers
Fraudulent transfers occur when property is transferred to a third party with the intent to hinder, delay, or defraud creditors. Moreover, under bankruptcy law, even innocent transfers without the intent to defraud creditors can have devastating consequences. Thus, for many, engaging in transfers of property is the the solution for how to protect assets from bankruptcy.
An example of fraudulent transfers can be found in Jackson v. Jackson In the Jackson case, the bankruptcy court ruled that even though there was no intentional fraud, the fact that the debtor received no value for the transfer, and it left the debtor with little capital to continue his business the transfer was fraudulent under bankruptcy law. Other common examples of fraudulent transfers can include changing title on a car from one spouse’s name to the other spouse or to their children.
How to Protect Assets From Bankruptcy by Using Exemptions
By consulting with a bankruptcy attorney prior to filing, a debtor can learn how to protect assets in bankruptcy without having to engage in fraudulent transfers. Typically, the best solution to protect assets in bankruptcy is to take advantage of bankruptcy exemptions. There are many exemptions under Florida Law to protect assets during bankruptcy. These include homestead, vehicle, and personal property. See Florida Homestead Law. For a complete list of exemptions contact a bankruptcy law firm in Tampa for advice on your specific case.
Bankruptcy Law Firm in Tampa
At Florida Law Advisers, we understand filing for bankruptcy can be a very confusing and intimidating process. That is why we work so hard to make the process as easy as possible for our clients. When you hire Florida Law Advisers, P.A., you get an experienced Tampa bankruptcy attorney by your side every step of the way. We will keep you well-informed, and help you receive the most benefits bankruptcy can offer. To schedule a free consultation with a bankruptcy attorney in Tampa call us today at 800 990 7763.