Asset Protection
Protect Your
Most Important assets
Protecting your assets when filing for bankruptcy allows you to keep some of the things you have worked so hard to get throughout your life. Implementing an asset protection strategy correctly is incredibly important, getting this wrong can result in creditors being able to seize your personal property, real property, bank accounts, or even garnish your wages to name a few things. Because laws regarding asset protection between each state, it’s important you hire an attorney familiar with the laws in your state.
Protecting Your Assets during Bankruptcy
What Assets Can't be Protected?
Property that cannot be exempted is called “non-exempt” property. Non-exempt property generally covers items that fall outside of the necessities for living and working.
Non-exempt assets are those that can be sold by the trustee assigned to your case by a bankruptcy court. In a Chapter 7 bankruptcy, the proceeds from the sale of these assets are used to pay off, or partially pay off, some or all of your creditors.
The laws around exempt and non-exempt assets can vary greatly, so much so that some states allow you to choose whether to use the state or the federal exemption system in your bankruptcy case.
Items that are often considered “non-exempt” are second homes, valuable collectibles, new/expensive cars, family heirlooms, cash, stocks, bonds, and, other investments.
What is Asset protection?
First of all, asset protection isn’t just for the very wealthy. Anyone who might be filing for bankruptcy should make sure they are working with an attorney who can help them protect their most treasured items.
Bankruptcy law allows debtors to keep a some property after going through the bankruptcy process. This property is called “exempt” property — it does not go into the bankruptcy estate and cannot be seized by creditors.
Generally, a bankruptcy debtor can exempt a certain amount of his or her property during bankruptcy. If done correctly, this can save a large amount of the assets of someone going through bankruptcy.
Property that is exempt can generally be called the “necessities of modern life.” This generally includes the sort of items that are necessary for living and working.
Court rulings and general practice experience have established a general idea of what types of property are exempt and non-exempt. Some examples of exempt property are vehicles, necessary clothing, household appliances, pensions, portion of equity in your home, tools of your trade/profession, and social security.
Asset Protection Strategies in Oregon
When protecting your assets in Oregon, the state laws need to be considered as they differ from federal bankruptcy law and other state bankruptcy laws. Some of these include the following:
In Oregon you can elect a homestead exemption, the range for this is from $30,000 to $39,000. If there are two or more debtors involved, the combined exemption cannot exceed $39,600. The homestead must be the primary home, and occupied by the owner, their spouse, parent, or child.
Life Insurance and Annuities also have particular laws about them in Oregon. Death benefits from a life insurance policy are exempt in bankruptcy cases. Group life insurance policies and the proceeds payable from such a policy are also exempt. Benefits, rights, privileges, and options under an annuity policy are also exempt. However, the total exempted benefits shall not exceed $500 per month
If a debtor has a disability and they receive benefits from their health insurance, proceeds and avails of health insurance policies providing benefits on account of the insured’s disability qualify as an exempt asset.
There are a handful of other laws that are specific to Oregon that an attorney can help you can take advantage of when you’re considering filing bankruptcy.
plan of action
Our Process for Asset Protection
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