Thursday, August 4, 2011
Top 10 Reasons For Filing Bankruptcy - #8
Not much money or value in assets. One of the relevant factors one must look at when contemplating bankruptcy is whether they have assets outside of a retirement plan, and if so, how are those asset situated. Ideally, the assets are exempt, or be in a posture to where they are not subject to administration by the trustee, and one could obtain debt relief while keeping their assets in tact. For example, you may have valuable property, like an antique light, that actually belongs to you and your wife, and because is was purchased by the two of you after you were married it is exempt as tenants by the entirety property; this presumes only one spouse is filing.
So the assets are divided up, as to exempt assets and nonexempt assets. Based on the nonexempt assets, including money in savings (but not a retirement account), one may choose to have the benefit of the use of those assets prior to filing bankruptcy. As a general rule, individuals with nonexempt assets that are too high may choose to file a Chapter 13 bankruptcy instead of a Chapter 7. And sometimes the level of ones assets might determine when, rather than if, they file bankruptcy.
A detailed explanation of what assets are exempt or not exempt, and how they obtain that status, is far beyond the scope of this article, and you should seek the advise of a bankruptcy attorney in your area for legal advise.