Yes, in most cases, you can do a certain amount of selling non-exempt assets and purchasing exempt ones – or moving the money into an exempt account like an IRA or 401(k) – before you file for bankruptcy.
There are risks in doing so, and any bankruptcy court will take umbrage at the appearance that you’ve tried to defraud your creditors by making funds unavailable to them.
However, properly handled, some amount of asset conversion is just smart financial planning, and you won’t be penalized for it in most cases.
Our bankruptcy attorneys can help you plan for bankruptcy in the most effective ways, and can maximize your exemption and your cash and assets post-bankruptcy.
Call Zelenitz, Shapiro & D’Agostino today at 718-599-1111 and talk to a bankruptcy lawyer for free.