Plan Your Bankruptcy
Pre-Filing Planning Bankruptcy is an important decision that has life changing impact, so it’s important that plan your bankruptcy prior to filing. If you are facing an immediate foreclosure or repossession please contact our attorneys as you may need to file an emergency bankruptcy as soon as possible, but absent such urgent circumstances, think about the following.
- Do Not Incur New Debt
- Do Not Borrow Money Against Your Home
- Do Not Withdraw Money From Your Retirement Plans, 401ks & IRAs
- Do Not Pay Back Family, Friends or Business Partners Prior Filing
- Do Take Advantage of Your Exemptions
Do Not Incur New Debt
You need a Bankruptcy Plan. New debt, from credit cards, cash advances, new loans and the other acts immediately prior to filing can look like fraud. Judges will look at a number of factors such as the amount of the charge(s), length of time, number of charges, employment, luxury purchase v. necessity to determine whether or not your debt should be discharged. Do not risk your discharge over new debt.
Do Not Borrow Money Against Your Home
You should never borrow money on your home to pay unsecured creditors like the credit card company. Depending on marital status, age or health, you can claim up to $175,000 in your home as exempt in your bankruptcy. Now, this assumes you should file bankruptcy. In rare cases, some people have paid off their home with a large amount of equity – well exceeding the exemption amounts. In these cases, it may be advisable to try non-bankruptcy routes like debt settlement plans or even refinance your home in order to pay off your creditor. Speak with our Riverside or Orange County bankruptcy attorney to see what’s best for you.
Do Not Withdraw Money from Your Retirement Plans, 401ks & IRAs
Pre Bankruptcy Information. Retirement plans can be 100% exempt from liquidation in California so the trustee cannot take the them. It’s advisable that you not withdraw money from your qualifying retirement accounts. Bankruptcy Retirement Planning is extremely important. Contact our office to speak to a Riverside Bankruptcy Lawyer or Orange County Bankruptcy Attorney to discuss your options before it’s too late.
Do Not Pay Back Family, Friends or Business Partners Prior to Filing (Insider Preference Transfer)
Bankruptcy Attorneys for Bankruptcy Counseling, Pre Bankruptcy Options, Information for Planning Bankruptcies and More
When times are tough, our family and friends often lend us money to help us get through some rough patches. And if things get worse, we usually try and pay them back before filing our bankruptcy because we feel it’s morally the right thing to do. Unfortunately, if you do pay back a family or friend, i.e. insider within 1 year of your filing, it may likely constitute an preference transfer and the trustee can then recovery any money given to your family or friends against them, sometimes even involving them in lawsuits. Additionally, any payments you made within 90 days of your filing to an unsecured creditor, e.g. credit card company, can also be a preference transfer and the trustee can recovery those payments as well. You need to discuss this issue carefully with a skilled attorney before you file.
While you may not care about the credit card company, you do care about your family and friends so what can you do? Well, simply wait. Wait until you bankruptcy has been filed, maybe even discharged, and then pay them back.
Do Take Advantage of Your California Bankruptcy Exemptions
Exempt property is property that the law permits the debtor to keep from unsecured creditors. Review the entire list of exemptions on our California Exemptions page to learn more about exemptions. However, determining which exemptions apply to your particular case is easier said than done. Sit down with our experienced Riverside Bankruptcy Lawyers or Orange County Bankruptcy Attorneys to discuss your Bankruptcy Plan for free.
The Bankruptcy Lawyers at California Bankruptcy Relief can help you today. We represent clients who seek bankruptcy advice and look to discharge debt through Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. Contact Us and an experienced Riverside Bankruptcy Attorney or Orange County Bankruptcy Lawyer will evaluate your case and review your options.
What this page covers
Bankruptcy Planning, Plan Your Bankruptcy, Before Bankruptcy Filing, Debt Relief Options in California, Bankruptcy Information, Riverside County CA Pre Bankruptcy Lawyer, Bankruptcy Law Firm, Repayment Options, Bankruptcy Loans, Bankruptcy and Retirement Prebankruptcy Plans, Orange County CA Bankruptcy Counseling, Filing for Bankruptcies, Bankruptcy Forms. Bankruptcy Option