PLANNING A BANKRUPTCY
Do people really plan to go bankrupt, and if they do when is the best time to start thinking about it?
It may sound surprising but very few people actually plan to go bankrupt. Think about it from a logical point of view – how many people do you know who plan to fail at anything in life?
Having said that there is the old maxim attributed to either Winston Churchill or Benjamin Franklin that goes something like “if you fail to plan you plan to fail” and there may be some truth to that.
It is not unusual that when people are faced with the inevitability of bankruptcy they start to ask questions about what will become of them and their property. But that may not be the best time to ask those questions since they may have been able to take steps a lot earlier on to preserve their property by making it “creditor proof”.
Bankruptcy trustees and lawyers are able to advise you on making your assets creditor proof long before you experience financial problems.