Laws That Protect Assets During Bankruptcy
State and federal laws have been set for what assets can and can’t be garnished by creditors during bankruptcy. These include:
- Traditional and Roth IRAs
- Qualified Retirement Plans
- Homesteads. Important Note: the amount of protection you will get on your home varies greatly from state to state. While some states offer unlimited protection, others other limited to no protection.
- Annuities and Life Insurance. State laws also govern the level of protection that applies to these.
Other Ways to Secure Assets
Asset protection might seem to have a bad wrap, but there are legitimate ways to protect your assets. Some methods include: asset protection trusts, accounts-receivable financing, striping out your equity, and family limited partnerships.
Working with a Bankruptcy Attorney
If you are facing bankruptcy, it’s a smart decision to work with a bankruptcy attorney. They’ll be able to advise you on what you assets you can and can’t protect during bankruptcy in addition to how to ensure the assets you can hold onto are secured. They’ll also be able to advise you on how to recover from bankruptcy and regain anything you have lost as a result of the bankruptcy process.