Pre-Bankruptcy Planning Allowed
Here is a common set of facts: A potential client comes into our office. During the conversation we learn that the potential client owns assets that would be vulnerable to liquidation by a trustee in a chapter 7 case. Maybe the asset is $10,000 in a savings account. Sometimes we recommend that the potential client place those funds in a retirement account where a trustee cannot reach them in their bankruptcy case.
There’s nothing secretive about what we’re doing. We come right out and say it in the bankruptcy schedules. And of course not all methods of fund depletion are equally credible – giving the money away, hiding it, or spending the money on luxury goods are some of the more blatant ways to get in trouble with the court. But even so, some trustees don’t like the advise that we give. This week we had a case go to hearing on just this set of facts and were pleased to learn that the judge agreed with our advice.
When the opinion is entered we’ll be sure to post the exact language that he used in his ruling, but for now, we’re happy to find that our firm’s advice to its clients has found validation from the bench.
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For more than 20 years, the Sasser Law Firm has been helping individuals and business owners sort through financial hardships to see the light at the end of the tunnel. Our North Carolina bankruptcy attorneys are all board-certified specialists, which means we have passed a complex exam, undergone a thorough peer review, and continue to earn legal education credits in this ever-evolving area of law.
