We can often see in TV dramas that some billionaires are destitute after bankruptcy, and we can often feel from the information conveyed in these TV dramas that if you go bankrupt, you will lose everything, but the fact is not true. Although you apply for bankruptcy, you will be liquidated, but if you transfer your property before applying for bankruptcy, or after you apply for bankruptcy, If the court liquidates your property and then pays off the debt, the remaining part is yours.
The part that will be seized
Almost most people will take their houses and cars as collateral for loans, because we usually do not have other large assets to prove our economic strength. Of course, some people will use some stocks, bond funds, etc. as collateral, but no matter what you use as collateral for loans, as long as you sign the loan contract, the contract indicates what you use as collateral, Then the court has the right to deal with it during the operation, and the items clearly marked in the contract are the parts that you will be seized.
Parts not indicated in the contract
When you declare bankruptcy, if the mortgages you have signed in the contract cannot be repaid after they are sold, the court will continue to auction your remaining property until you pay off the money. According to our existing legal provisions, your assets are not protected by this contract, but the only thing you can do is to restructure the assets, That is to say, you can manually choose what you want to repay first, that is, what you want to sell first. In fact, this method has another advantage: if your income source is stable and your income is not very low, you can use the wages you earn from your labor to offset, so you can ease your bankruptcy dilemma.
Those properties about marriage
Maybe you have seen some rich people get divorced after bankruptcy. In fact, not all marriages can't stand the test. Maybe this is just their plan and means to keep the other party with surplus funds for turnover or to protect the other party from the involvement of property liquidation. For example, if you have written some contracts before marriage, in which it is stated that some property belongs to personal premarital property, When you are facing bankruptcy, if you choose to share the debt with your husband and wife, the personal assets can be protected, but the specific situation is often complex, such as what is the definition of common property, the final signer of the loan and the responsible person we involved in the loan before are a large amount of work.
Some ancestral items
If you have some very important things and want to pass them on to your descendants, there is a very simple way to help you, that is, before you declare bankruptcy, put these things in your trust, and then give these things to others. In this way, these things will not belong to you personally, and therefore will be protected.
