Attorney at Law
FOR LAWYERS

Prebankruptcy Planning

By
Daisy Rogozinsky
/
June 13, 2022

Debtors planning to file for bankruptcy are advised to take certain prebankruptcy planning steps to help them properly and successfully file for bankruptcy. In this article, we define the term “prebankruptcy planning” and offer some suggestions for it. 

Key Takeaways

  • Prebankruptcy planning is the process of preparing to file for bankruptcy
  • Some prebankruptcy planning tips include retaining legal counsel, listing all of your property and creditors, and learning which property you can exempt

What Is Pre Bankruptcy Planning?

Prebankruptcy planning is all of the planning that a debtor may do to help prepare for the process of filing for bankruptcy.

There are a few things that a person can do as part of prebankruptcy planning including:

  • Learning about and understanding the different types of bankruptcy 
  • Selling property
  • Seeking legal counsel

Prebankruptcy Planning Tips

Below are some tips for debtors in the pre-bankruptcy planning phase. 

Speak to a Bankruptcy Lawyer

In almost all cases, bankruptcy debtors will be represented by an attorney who can help them handle bankruptcy laws, processes, and hearings. It’s strongly encouraged for every debtor to have qualified legal representation. Lawyers can help you understand whether or not filing for bankruptcy is your best option, determine which type of bankruptcy is right for you, and help you navigate the entire bankruptcy process from beginning to end.

Do Not Try to Hide Property

When you file for bankruptcy, you must turn your non-exempt property over to a bankruptcy estate to be sold off to pay your creditors. Many debtors find it tempting to give property away to family or friends in order to keep it out of their bankruptcy estate. This is considered to be fraudulent and can lead to you having your case dismissed and facing criminal charges. For this reason, it’s important to be totally honest in the bankruptcy process. 

List All of Your Creditors

The purpose of bankruptcy is to provide debtors relief by discharging most of their debts. If you forget to list one of your creditors, the debt you owe them may not be discharged, making it important to list all creditors without exception. 

Be Careful About Your Purchases

All of the purchases that you make within the six months prior to filing bankruptcy will be carefully scrutinized by your bankruptcy trustee, who is checking to make sure that you didn’t make any purchases while you were already insolvent without any intention of ever paying back your debt. 

Don’t Prioritize Certain Creditors

Debtors cannot choose to pay certain creditors while not paying others, especially if that creditor is in some way related to you or benefits from your preferential payments. If you are found to have made a preferential payment, you may have to return that money to your bankruptcy estate.  

Exemptions

Certain types of property required for living daily life such as clothing and home furnishing are considered exempt and will not be seized and sold off when you file for bankruptcy. It’s important to go over everything you own with your lawyer to see what you can claim as exempt and keep for yourself even as you file for bankruptcy.

Ask a Lawyer

Ask your own question and get advice from expert attorneys
Ask Question

Featured Bankruptcy Lawyers

Fredric M. Boyk, Esq. Attorney at Law

google-logo
29 years in practice
Auto Accidents, Bankruptcy, Personal Injury
View Profile

Wootton & Wootton

google-logo
18 years in practice
Bankruptcy
View Profile

Jordan Legal Group

google-logo
47 years in practice
Bankruptcy
View Profile

Blason-Aguilar Law

20 years in practice
Alimony, At-Fault Divorce, Child Custody, Child Support, Contested Divorce
View Profile

Massi & Massi Attorneys At Law

google-logo
8 years in practice
Auto Accidents, Personal Injury, Premises Liability
View Profile

Platinum Injury Law

google-logo
7 years in practice
Auto Accidents, Personal Injury, Wrongful Death
View Profile

Contact AttorneyAtLaw.com

Are you looking for an attorney? Do you have questions about a legal case you are facing? Contact us now and we will put you in touch with a lawyer for free.

Related Posts

Automatic Stay
Daisy RogozinskyMay 31, 2022
Trustee
Daisy RogozinskyJune 22, 2022
Disposable Income
Lia Kopin-GreenApril 11, 2022
Objection to Dischargeability
Daisy RogozinskyJune 13, 2022
Attorney At Law is changing how clients connect with lawyers. By providing an innovative platform to lawyers who want to expand their practice’s reach, AAL is bringing law practices into the future.
6142 Innovation Way
Carlsbad, California 92009
Some of the content of this website may be considered attorney advertising under the rules of certain jurisdictions. The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.
crossmenuchevron-upchevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram