Within reason, it is acceptable to purchase exempt assets like a home or a car ahead of bankruptcy.
In some cases, it also makes sense to sell a non-exempt asset and put the cash into an exempt account or invest it in an exempt asset.
This process is known as asset conversion, and if done appropriately and in good faith, most bankruptcy courts have agreed that it is a money management practice rather than an effort to change the ultimate disposition of the bankruptcy.
However, excessive conversion of assets will look to a bankruptcy judge like you are attempting to defraud your creditors.
It’s important that the actions you take ahead of bankruptcy protect you, rather than expose you to additional problems.
The attorneys at Zelenitz, Shapiro & D’Agostino can help you develop a plan that gets you through bankruptcy with the maximum allowable property and cash.
Call us today at 718-599-1111 for a free consultation with a Queens bankruptcy lawyer.