Wednesday, April 13, 2016, AM | Leave Comment
When you can’t pay your bills, you can expect that your creditors will contact you. In some cases, you may get a phone call or a letter asking when your next payment will come in.
In more extreme circumstances, you may be served with a lawsuit or have your property repossessed.
What are some ways that you can protect your assets from creditors?
File For Bankruptcy
Assuming that you have little or no cash or assets to repay your debts, Chapter 7 bankruptcy may be your best option.
Debts will discharged in a few weeks while allowing you to keep any money that you have in a retirement account or assets such as a car to get you to and from work.
For those who do have a job or assets, it may be necessary to reorganize your debt under Chapter 13 of the bankruptcy code.
Sue Creditors Who are Harassing You
With the help of Florida litigation lawyers like those at the Silver Law Group, you may be able to get money from the creditors instead of the other way around.
There are a variety of actions that debtors cannot take such as threatening to sue you if they do not intend to do so or threatening to take assets unless they were used to secure a loan.
If that happens, you can take a creditor or creditors to court, which should be enough to get them to back off until an amicable resolution can be reached.
Put Assets in a Trust
When placed inside of a non-revocable trust, your assets cannot be sized by creditors. However, you will not have control over those assets once they are placed in the trust, and you may only access them per the language of the trust document.
Therefore, you should consider carefully whether you would rather relinquish control of your home, car or other valuables to another party. It should also be noted that the trust may be considered invalid if it was created after creditors started to pursue them to repay a debt or some other obligation.
There are plenty of options at a creditor’s disposal when they want to compel payment.
Understanding what they cannot do or what options you have to keep them out of reach may make it easier to maintain your possessions while you work out a new way to pay for them.
If necessary, an attorney may help you work out a solution that you and your creditors can agree to.Facebook.com/doable.finance