Tuesday, February 17, 2015

Should I Have Money In The Bank Before Filing Bankruptcy?

Prior to filing bankruptcy there are some smart ways to use your money. However it’s very important to understand what you can spend money on and what the courts will not consider exempt. We recommend consulting with your attorney before making these decisions.

Bankruptcy laws in Georgia allow you to plan prior to filing bankruptcy.  You are also allowed to maximize the exemptions which can increase the property you get to keep.  This includes converting non-exempt assess (such as cash) into exempt assets (like appliances or clothing). Making smart purchases with your money prior to filing can help you transition out of bankruptcy and help reduce the amount of cash that can become part of your bankruptcy estate.

Some exempt assets to consider purchasing prior to filing bankruptcy include:
  • Most major appliances (not including televisions)
  • Beds and bedding
  • Clothing and shoes
  • Food
  • Back payments on secured assets such as cars or homes
  • Bringing utility payments current
  • Necessary and current bills such as rent or cell phone bills

Items you should not spend money on prior to filing bankruptcy include:
  • Vacations or any travel
  • Jewelry or other luxury items
  • Televisions
  • Recreational Vehicles

There are many other items not considered exempt.  Call King and King in Atlanta today for a free consultation at 404-524-6400 or visit us at www.kingandkingattorneys.com for more information.