A Houston Bankruptcy Attorney for Debt Victims
When people consider filing for bankruptcy, they usually wonder what will happen to their beloved assets. If a person has the right approach to their bankruptcy along with the counsel of a bankruptcy attorney, they are usually able to protect their property and assets from being seized or liquidated. A Houston bankruptcy attorney understands the intricacies of the new bankruptcy law and how it can benefit those filing for bankruptcy.
The New Bankruptcy Law & Asset Protection
The new federal bankruptcy law affects the protection of qualified retirement plans and the Individual Retirement Account (IRA). The previous law fully protected assets in qualified plans from the claims of creditors, but the new law limits protection for funds in IRAs. Now, the maximum amount of funds exempt from creditors is $1 million.
The new bankruptcy law also overrides the different state rules for homestead protection for personal residences. The exemption for personal homes is now capped at $125,000 if the house was acquired within 1,215 days of filing for bankruptcy asset protection. The law also created the first clear protection for funds in 529 plans, a state-operated investment plan that allows parents to save money for college tax-free. However, contributions made to the fund within a year of filing for bankruptcy are not protected, and other regulations apply.
Individuals are currently allowed to create self-titled asset protection trusts in twelve states. These trusts block creditors from any assets held in the trust. However, the new law adds further stipulations to the assets that will be protected, and it is wise to consult a bankruptcy attorney before filing for bankruptcy.
Call a Houston bankruptcy attorney today!
When you are facing the harsh reality of filing for bankruptcy, you may be uncertain about what type of bankruptcy is best for you. A bankruptcy lawyer at our firm can help guide you through the differences between Chapter 7 bankruptcy and
Chapter 13 bankruptcy so that you can feel confident in your decision. We will also help you accurately assess your property values so that you can file for bankruptcy exemptions and avoid being charged with bankruptcy fraud. Contact our professional team at the Malaise Law Firm to begin your financial recovery today.
With over 14 years of helping clients resolve their debt, you can be confident you are making the right choice with our firm. Contact a Houston bankruptcy attorney about your financial matter today.