Pre-Bankruptcy Planning in Orange County
Our Irvine Attorneys Can Help You Protect Your Assets
Deciding to file for bankruptcy is one of the most difficult decisions you can make. Before you file, there are several factors you should consider, and when you are planning ahead, there are certain rules you must follow. There is nothing wrong with wanting to get the most relief out of your bankruptcy, but some forms of planning can be interpreted the wrong way. That is why you need to hire a pre-bankruptcy planning attorney like the ones at Financial Relief Law Center.
Our experienced lawyers can help you get the timing of your bankruptcy just right, protect more assets, and discharge more debt. We put 25+ years of combined legal experience on your side, and we are available to create personalized bankruptcy solutions for clients in Irvine and throughout Orange County.
Call us at (949) 570-5466 to set up your free consultation today.
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 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.
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 free 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) 570-5466 or contact us online for a free consultation.