Liquidating assets before bankruptcy

Primarily, these steps are: of the money, paying for groceries, rent, and other standard household expenses until the lump-sum total of the cash balance that you have on hand is low enough that your attorney can exempt it and protect it from liquidation by the Trustee.

This is, of course, not an option for those who are in need of the protection of the bankrutpcy Automatic Stay from immediate lawsuits, garnishments, foreclosures, repossessions, or other collection actions.

It is crucially important that you do not take steps to transfer or hide cash or any other property prior to filing bankruptcy before consulting an experienced bankruptcy attorney.

Once you’re cleared to file, the judge arranges a court-ordered payment schedule to pay back your debts.For others, however, a little patience may be in order.Finally, a further option, if you need immediate relief and do not have the luxury of taking time to plan a Chapter 7 bankruptcy, a Chapter 13 bankruptcy may be a better option for you if you have more property, cash or other types, than can be protected in a Chapter 7.In a Chapter 13 bankruptcy, there is no liquidation of property at all, although the presence of non-exempt property can impact the necessary size of your monthly Chapter 13 plan payment.If you are a Michigan resident and are considering filing for bankruptcy, please contact us at (866) 674-2317 or click the button below to schedule a free, initial consultation.

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