Assessing Your Assets
Under Arizona bankruptcy law, debtors are allowed to exempt some of the value of their assets from creditor deprivations. This means that you can shelter or protect a certain amount of assets by declaring them exempt. However, it is very important that you make good decisions regarding what assets you choose to protect. Since you have a limited number of exemptions, you want to protect your most important assets. The bankruptcy attorneys at Oswalt Law Group in Phoenix offer the following advice about choosing the right assets to protect:
- Protect necessities before luxuries. After your bankruptcy, you will need a home to live in and transportation to work. However, you may not need a boat or ATV. If you have to make difficult choices about which assets to protect, remember to choose the ones that will give you benefits post-bankruptcy, even if it is hard to let your luxuries go.
- Protect assets with longevity. When it comes to your personal possessions, some are of higher quality and will last longer than others. These are the assets that should be protected with your exemptions. The longer an item will last, the more use you will get from it, making it a good choice for exemption status in your bankruptcy. This is particularly true with items that you will use frequently like lawn equipment.
- Recognize which assets are truly valuable. There are some assets that are not covered by exemptions but which there is little chance your creditors will want to take. If an item has no value to your creditors, do not include it in your exemptions. This makes more room for you to protect items that do have value.
- Use another pair of eyes. Sometimes, it is best to have someone else look at your possessions to help you gain an objective view of them. A trusted friend or even your bankruptcy attorney can offer sound advice in this regard. Listen to their wisdom and make decisions based on their input as well as your own feelings.
If you are facing the difficult task of filing for bankruptcy and trying to protect as many of your assets as possible, contact the experienced bankruptcy attorneys at Oswalt Law Group in Phoenix. These lawyers have the knowledge and expertise to make your bankruptcy experience easy and effective. Call today for a free consultation appointment to discuss your case.