Pre-Bankruptcy Planning in Irvine

Budgeting and Bills

Bankruptcy only helps eliminate the debt that exists before you file your case. The costs of daily living will continue throughout the legal process, so you will need to create a budget and have a good idea of your future bills. If you are expecting a large expense, like a hospital bill, you may need to wait until after the expense arrives to file for bankruptcy.

While you can stop paying debts that are about to be discharged, you need to make sure you qualify for bankruptcy first.

Our Irvine, California pre-bankruptcy lawyers can help you focus the money you have left on the most important expenses, keep you above water throughout your case, and plan for a fresh start.

Protecting Your Assets

Different chapters of bankruptcy allow you to keep different assets via exemptions. In Chapter 7 bankruptcy, the majority of your assets will be liquidated (sold) and used to pay creditors, but in Chapter 13 bankruptcy, you can keep certain assets and pay creditors over time.

If there is something valuable you want to hang onto (e.g., a family home, business, or heirloom), you will need to choose the right chapter to protect it. Otherwise, most bankruptcy chapters allow you to keep the things you need to work and live, such as your home, car, household goods, and clothing. Most bankruptcies also allow you to keep your retirement accounts.

You will need to evaluate each asset and each bankruptcy option carefully and create a plan that best protects your assets.

Financial Relief Law Center can help you examine your assets and choose between a Chapter 7 and Chapter 13 bankruptcy. We can also help you restructure your business with a Chapter 11 filing.

Maximizing Your Relief

Although there is no limit to how many times you can file for bankruptcy, most people prefer to do so only once. Additionally, you must allow time to pass between bankruptcy filings. Chapter 7 discharges are only available every 8 years, and even transitioning from a Chapter 13 to Chapter 7 bankruptcy takes about 6 years.

To maximize your relief, you must choose your timing carefully. Bankruptcy is a last resort and should be treated as such, but there is no shame in filing – nor filing strategically. While you can make some financial decisions to ease your burden, prioritizing certain debts or making large transfers can get you in trouble if you end up filing for bankruptcy soon after. Having an advocate and guide can help you make the smartest financial decisions before, during, and even after your bankruptcy.

If you’re in dire financial straits, scheduling a consultation with a pre-bankruptcy planning attorney can be a great way to determine if and when bankruptcy is right for you.

Start Planning Today

When considering bankruptcy, the future is always brighter than the past. You get to leave behind overwhelming debt and find a fresh start. Planning for your future is a key part of the bankruptcy process. Not only will you have to complete mandatory financial counseling, but you should also plan your bankruptcy strategically with a seasoned professional.

At Financial Relief Law Center, our team is ready to communicate with you about your needs and help you through the pre-bankruptcy planning process. Afterward, we can help you file the bankruptcy of your choice. We understand that no two individuals or families are alike, and we provide solutions to your unique situation.

With us, you will always be up to date with the status of your case, and you will always have our extensive knowledge and experience on your side.

The future is waiting. Start planning for it today.

Call us at (949) 787-1889 or contact us online for a consultation.