Keep Property Assets In Bankruptcy

17 - Mar - 2018
Credit Card Debt

Will I lose my house, my jewelry, my car? What about the clothes on my back, are they safe? These are legitimate concerns, but the misconception is that a person will lose everything when they file for bankruptcy.  Property exemptions are designed to protect what you really need to keep during the bankruptcy process. Your options depend upon a variety of factors. After meeting with an experienced bankruptcy lawyer, people are generally pleased they can protect all of their assets.

Exempt vs Non-Exempt Property

Exempt property is that which can be kept during and after the bankruptcy process.  Non-exempt property is the property courts will sell to pay back your creditors.  You will find a bankruptcy lawyer very helpful in this process, but truthfulness is an absolute must.  When sharing information about your property assets, anything less than the truth could constitute fraud.  Some of your property may be off limits, but first they must be revealed, then claimed exempt.

Common Types of Exempt Property

Exempt and  Non-Exempt property assets  are going to vary greatly between bankruptcy cases.  However, we have listed some common exempt property items here, just to give you an idea of what they may be:

  • Vehicles, (yes more than one), up to a certain value
  • Home, up to a certain value
  • Jewelry, up to a certain value
  • Wages, up to a certain value
  • Items necessary for the debtor’s trade or profession, up to a certain value
  • Reasonably necessary clothing & household goods
  • Retirement Pensions & Public Benefits
  • Child Support & Alimony

Keeping Personal Property Depends On Bankruptcy Filed
The largest factor that determines how your personal property is going to be handled comes in the type of bankruptcy that you file.  If you want to keep all of your property, Chapter 13 bankruptcy can allow you to keep both exempt and non-exempt property. The value of the property you keep will be calculated to determine repayment to creditors. Chapter 7 bankruptcies are a little more complicated, but if filed correctly by listing all assets, and using appropriate exemptions, you should be able to keep all of your property.

Keep Property You Need By Consulting A Bankruptcy Lawyer

Trying to handle your own bankruptcy without lawyer representation can be a big mistake. Handling property exemptions correctly is complicated. Your attorney can help prevent errors and ensure the bankruptcy process goes smoothly.  The whole idea behind filing bankruptcy is to eliminate debt as quickly and painlessly as possible. You’re going to have a lot of questions about bankruptcy property exemptions, and how to keep the property you want.  We are here to answer your questions. We are 100% dedicated to bankruptcy cases, and familiar with state and federal exemptions.  We’ll provide the guidance and support to ensure you get to keep all of your assets.  Setup a free consult with a Debt Advisors bankruptcy attorney today.

Related Blog

21
Sep
2023
Exploring Alternatives to Bankruptcy: Debt Management Plans

Exploring Alternatives to Bankruptcy: Debt Management Plans

The average American household has more than $100,000 in debt. While bankruptcy often emerges as a well-known option, it’s not the only path available for debt relief. Debt Management Plans (DMP..

READ MORE
12
Sep
2023
Your Legal Rights During the Debt Collection Process

Your Legal Rights During the Debt Collection Process

In August 2021, about 64 million people with a credit record (approximately  28% of Americans) had debt in collections on their credit report. Although the experience of debt collection is not unusua..

READ MORE

One-on-one Attention

Make the Right Choice