Asset planners such as CPA’s can be a great resource for avoiding tax liability or using trusts to avoid probate. However, such asset managers are often unfamiliar with bankruptcy laws, mainly bankruptcy exemptions, and their laser-like focus on short term gains and tax avoidance can cost you big time if you find yourself in need of bankruptcy protection.
Because of this potential blind spot, it is imperative to consider how asset planning moves will affect you in a potential bankruptcy case. This is because transfers of business and personal property are heavily scrutinized by the bankruptcy court, and many moves that look like a good idea to your CPA can actually cause you to lose the benefit of the bankruptcy exemptions, and worse. Continue reading Asset Planning While in Debt – Don’t Just Take Your CPA’s Word