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Do Bankruptcy Courts Allow Asset Conversion?

Yes, within reason, most bankruptcy courts allow a certain amount of conversion of non-exempt assets to exempt assets prior to filing for bankruptcy.

This can take many forms, like selling a non-exempt asset like a boat in order to buy an exempt asset like a car, or moving cash from a non-exempt account into an exempt retirement account.

This must be done with care, and within reasonable limits.

Any appearance of fraudulent maneuvering before bankruptcy can complicate or even stop your effort to declare bankruptcy, and some judges and trustees are more sensitive to asset conversion than others.

The best way to protect yourself and your assets is to work with experienced bankruptcy attorneys.

Call Zelenitz, Shapiro & D’Agostino today at 718-599-1111 for a free consultation.