Asset Protection & Bankruptcy

Bankruptcy Lawyer

As you acquire assets, it is wise to protect them against the possibility of lawsuits. A key part of this is recognizing that some assets are safer than others. With guidance from a bankruptcy lawyer you can protect your hard-earned wealth with proper asset protection.

Protecting Assets from Execution

Illinois law protects debtors from losing everything when sued by creditors. It does this by establishing a number of exemptions of property which may not be seized in lawsuits. If you file for bankruptcy to discharge your debts, the bankruptcy court uses these same exemptions to determine what you may keep. When facing lawsuits or bankruptcy, it is obviously best to have your wealth invested in protected assets.

Protected Assets

Under Illinois law you have a homestead exemption to $15,000. This means equity in your house is safe up to $15,000 in value. If your equity is over this amount, your home is subject to sale and the excess taken to satisfy debts. If you have substantial cash or a stock portfolio, you stand to lose these in bankruptcy. You may safely invest these assets however in life insurance or annuities and they will be secure. A car is safe up to $2,400 in value. Tools of trade up to $1,500 are protected and miscellaneous personal property is secure up to $4,000.

Gifts to Relatives

You need to be careful when giving assets to relatives. In bankruptcy, any asset transferred for inadequate compensation within one year of filing is considered a fraudulent transfer. It may be voided by the bankruptcy trustee and taken to satisfy debts. As a result such transfers need to be planned ahead. If filing bankruptcy, it is important to time your filing accordingly.

Bankruptcy Attorney

At Bizar & Doyle, we counsel clients on asset protection. If a client is seeking discharge of debts in bankruptcy, we review their situation to protect their assets as much as possible. In this endeavor we guide clients to adjust their assets to fit state exemptions. Where possible we schedule bankruptcy filings to protect assets transferred to others.

Contact a Bankruptcy Attorney at the firm to discuss asset protection.