Switch to ADA Accessible Theme
Close Menu
West Palm Beach Bankruptcy & Business Attorneys > > Bankruptcy Attorneys > Protecting Personal Assets in Bankruptcy

Protecting Personal Assets in Bankruptcy

Bank7

In a bankruptcy case, one of the major concerns that many debtors have is how and whether they can protect personal assets. It is important to know that business bankruptcy cases do not involve personal assets (unless the business is a sole proprietorship, or unless there is an issue in which one of the business owners can be held personally liable for the business’s debt). Yet even if you are filing for personal bankruptcy, it is important to understand that all forms of bankruptcy do not require the liquidation of assets. Even when assets are liquidated, the debtor is able to protect many assets from liquidation. Our West Palm Beach bankruptcy attorneys can explain in more detail.

Filing for Reorganization Bankruptcy 

Filing for reorganization bankruptcy can actually be a way of protecting certain personal assets — those for which you have secured debt, such as a home mortgage or a motor vehicle payment. Types of reorganization bankruptcy — Chapter 13 is more common among individuals — do not require any assets to be liquidated. Rather, this type of bankruptcy involves the debtor proposing a reorganization plan to repay debts over time. Through the terms of the plan, the debtor can catch up on payments owed to creditors and actually protect secured property.

Using Florida’s Bankruptcy Exemptions 

Even if you are not planning to file for reorganization bankruptcy, Florida’s bankruptcy exemptions allow you to protect a wide range of personal assets in a Chapter 7 liquidation bankruptcy case.

Under the Florida Statutes, there are many important exemptions that may apply to your property. If you own exempt property, it will not be liquidated in a Chapter 7 case and you will be able to protect it and keep it. Exemptions under Florida law include a generous homestead exemption, a “wild card” exemption for personal property of your choosing, exemptions for retirement benefits, and much more.

Avoiding Actions That Can Look Fraudulent 

You should not try to protect your assets by taking any steps that could appear like bankruptcy fraud. To be clear, you cannot protect your assets by doing any of the following, and all of the following are actions that should be avoided prior to or during a bankruptcy case:

  • “Gifting” assets to family members or friends;
  • Transferring personal assets to a business account, or to an account in another party’s or entity’s name;
  • Omitting property in the schedules submitted with your bankruptcy case; and
  • Undervaluing property in materials submitted with your bankruptcy petition.

Contact a West Palm Beach Bankruptcy Attorney Today 

It is critical to know that you will not lose all of your property — and may not lose any of your property, in fact — when you file for bankruptcy in South Florida. To learn more about reorganization bankruptcies, or how exemptions protect exemptions in Chapter 7 bankruptcy cases, you should get in touch with one of the experienced West Palm Beach bankruptcy lawyers at Kelley, Fulton, Kaplan & Eller today. Contact us to learn more about different types of bankruptcy and the processes for each, or to begin working with us on your bankruptcy case.

Source:

flsenate.gov/Laws/Statutes/2011/0222.01

Facebook Twitter LinkedIn

© 2019 - 2025 Kelley Kaplan & Eller All rights reserved.
This law firm website and legal marketing are managed by MileMark Media.

21st Anniversary