Personal Bankruptcy Lawyer Near Orem Utah
Ascent Law LLC (801) 676-5506 Free Consultation
What Assets Can I Keep If I Go Bankrupt?
In bankruptcy, a trustee will sell nonexempt assets and use the proceeds to repay unsecured debt. Luxury items are not protected by bankruptcy exemptions and will be sold off. However, if the debtor can offer another exempt asset in exchange for the nonexempt asset, the trustee may accept it.
Exempt investments
There are a few types of investments that are off limits to creditors during a bankruptcy case. One such type of investment is a 401(k) retirement plan. These funds are exempt from the reach of creditors and are protected under federal law. The plan must be sponsored by an employer and operate under section 401(a) of the IRC. However, there are some exceptions. For example, the IRS can levy funds from a 401(k) bankruptcy exemption, but this is generally seen as a last resort.
If you do have any investments that are exempt from bankruptcy, the best way to protect them is to consider the bankruptcy trustee’s guidelines. An attorney can help you figure out which type of exemptions will work best for your situation. Typically, a debtor cannot use their nonexempt investments in a bankruptcy, but it is possible to protect them through the personal property exemption.
IRA’s
An IRA is a retirement account that can be kept if you file for bankruptcy. Many people rely on their IRA’s to help fund their retirement. They’ve spent years building up these accounts, and they can be a major source of retirement assets. While the process of filing for bankruptcy under Chapter 7 is designed to give debtors a fresh start, it’s unlikely that anyone would want to face poverty in their later years.
IRA’s are generally exempt from creditors during a bankruptcy filing. This protection is a product of federal law. If your retirement plan is sponsored by your employer and is under section 401(a) of the Internal Revenue Code, your retirement funds are protected from creditors. Although the IRS is allowed to levy funds from a 401(k) in a bankruptcy filing, it usually sees this as a last resort and doesn’t pursue it too aggressively.
Home
Fortunately, bankruptcy laws allow you to keep some of your assets after filing. Most of your personal property, including your house, will be exempt. However, you must continue making payments to your lenders, which may require a reaffirmation of the debt.
While your current mortgage and most other property will be exempt, some of your assets may not. This is where a bankruptcy attorney comes in. Your lawyer will look over your assets and help you determine what you can keep in bankruptcy. Generally, if you have any nonexempt assets, the trustee can sell them to repay your unsecured debt. You can negotiate with the trustee to get another exempt asset in exchange for your nonexempt assets.
401(k)
Your 401(k) is a type of retirement plan that protects your funds from creditors. In bankruptcy, however, you can lose that protection if you make an investment in a non-exempt account. Therefore, it’s essential to make sure that you don’t withdraw any money from your 401(k) before filing for bankruptcy.
In addition to bankruptcy trustees and creditors, your 401(k) funds are protected by federal law. If you make a withdrawal from the account to pay off a debt, you could be accused of fraudulent behavior, which would lead the trustee to dismiss your case. Therefore, you should consult a bankruptcy attorney before withdrawing money from your retirement plan.
If you have any questions, you can get a free consultation with Ascent Law LLC:
Ascent Law LLC:
8833 South Redwood RoadSuite C
West Jordan, UT 84088
(801) 676-5506
https://g.page/ascentlaw?share
https://www.ascentlawfirm.com/bankruptcy-lawyer/
When you need a Divorce Lawyer, contact this law firm:
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Orem, Utah
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Orem, Utah
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Orem City Center
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Flag
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| Nickname:
Family City USA
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Location in Utah County and the state of Utah
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| Coordinates: 40°17′56″N 111°41′47″WCoordinates: 40°17′56″N 111°41′47″W | |
| Country | United States |
| State | Utah |
| County | Utah |
| Settled | 1877 |
| Town charter granted | May 5, 1919 |
| Named for | Walter C. Orem |
| Government
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| • Mayor | David Young |
| • Spokesman | Steven Downs |
| • City Manager | James P. Davidson |
| Area | |
| • Total | 18.57 sq mi (48.10 km2) |
| • Land | 18.57 sq mi (48.10 km2) |
| • Water | 0.00 sq mi (0.00 km2) |
| Elevation
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4,774 ft (1,455 m) |
| Population
(2020)
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| • Total | 98,129[1] |
| • Density | 5,267.22/sq mi (2,033.67/km2) |
| Time zone | UTC-7 (Mountain (MST)) |
| • Summer (DST) | UTC-6 (MDT) |
| Area codes | 385, 801 |
| FIPS code | 49-57300[3] |
| GNIS feature ID | 1444110[4] |
| Website | www |
Orem is a city in Utah County, Utah, United States, in the northern part of the state. It is adjacent to Provo, Lindon, and Vineyard and is approximately 45 miles (72 km) south of Salt Lake City. Orem is one of the principal cities of the Provo-Orem, Utah Metropolitan Statistical Area, which includes all of Utah and Juab counties. The 2020 population was 98,129,[1] while the 2010 population was 88,328[5] making it the fifth-largest city in Utah. Utah Valley University is located in Orem.
Orem uses the slogan “Family City USA.”[citation needed]
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What assets can I keep if I go bankrupt?https://t.co/kUBqi11SEn pic.twitter.com/d4RRXyScFP
— Jan Meriss Alfonso (@MerissJan) October 28, 2022
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