Posts Tagged ‘exemption’

Asset Protection

Thursday, November 25th, 2010

People often work hard to provide security for themselves and their family.  When they face difficult economic times that cause them to be unable to  pay required financial obligations, be current on mortgage payments, deal with medical bills, make automobile payments, keep up on credit cards or generally handle financial pressures there is  a major concern that there will be a  loss of valuable assets.  Sometimes the assets may not even have a large money value, but the concern of having a loss is  based on a sentimental attachment.  This attachment to assets makes some people hesitant on exploring debt relief out of fear of having to lose assets.  A major asset is a person’s home.  There is a common misconception that using bankruptcy as a form of debt relief will cause a person to automatically lose his or her home. There are other commonly spread false notions about debt relief as well.  This misinformation ignores legal realities including United States bankruptcy law.  One thing that people who are interested in asset protection can keep in mind is that the law allows for something called an exemption, which allow for a person to keep certain types of assets under certain circumstances.  These exemptions can work in bankruptcy.  Rather than stay away from debt relief out of fear based on bankruptcy myths a consumer can instead contact a Minnesota law firm who can arrange to have a Minnesota bankruptcy attorney do a bankruptcy evaluation for the consumer.  This form of bankruptcy appraisal is an evaluation of the consumer’s financial situation as to  suitability for bankruptcy and may include a review of the potential use of exemptions to protect assets.   The assets held by a debtor must be reviewed in light of the law prevailing at the time of filing bankruptcy.   In considering the issue of exemptions a debtor must look both to the state law and federal law for exemptions that may apply to his or her particular situation.  Consumers must, however, keep in mind that they may only elect to be covered under either the state exemption statutes or the federal bankruptcy exemption statutes.  In other words, the consumer may only elect to use the federal bankruptcy exemptions or Minnesota state exemptions and not a combination of the most favorable federal bankruptcy exemptions and state exemptions.  For that reason it can be worthwhile to contact a Twin Cities law firm who has a bankruptcy service to arrange to meet with a Minnesota lawyer.  A consultation with a knowledgeable Minneapolis bankruptcy attorney or St. Paul bankruptcy attorney can be very useful in assessing which set of exemptions to use to preserve ownership of property.  Meeting with a Minnesota bankruptcy lawyer can be a first step toward finding a way to debt resolution.

This blog is not intend to give legal advice and does not do so.  The reading of this blog does not establish an attorney-client relationship.

We are a debt relief agency, we help people file for relief under the bankruptcy code.