The most elemental exemption planning tool is to save exempt assets while consuming non exempt assets. It doesn’t require last minute transfers or fundamental alterations in the way assets are held. It simply requires attention to which pocket the debtor pays bills from. Clients who receive Social Security, disability, or other forms of income that…
Everywhere I’ve looked this week, new bankruptcy lawyers are struggling with client tax liens. Here’s my list of basics you need to know about federal tax liens. Tax liens create a secured claim in favor of the taxing authority. That claim incurs interest at the statutory rate. Exemptions, bankruptcy or state, are not effective against…
Old and new consumer bankruptcy lawyers have a treasure in John Bates’ masterpiece on the exemption laws of each state and the availability of those laws to non residents in bankruptcy. Check out www.exemptionexpress.com, then send John a thank you. Why do I care what the exemptions are in any state but California? The Bankruptcy…
Sometimes, as an inexperienced bankruptcy lawyer, it’s hard to get your head around the idea that your client can have an asset of substantial value and not need to exempt it when filing bankruptcy. That’s because only property of the estate is potentially available to pay the client’s creditors in a bankruptcy, and some assets,…