What will I lose if I file bankruptcy?
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.
Property Exemptions in Bankruptcy
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 (The Kind You Keep In Bankruptcy)
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
Federal vs State of Wisconsin Bankruptcy Exemptions
If you’ve been a Wisconsin resident for more than two years, you have the option of choosing federal or WI state property exemptions, depending upon which is more beneficial to your particular situation. The bankruptcy attorney you hire is familiar with both state and federal exemptions.
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. Start here to setup a meeting with a Debt Advisors bankruptcy attorney.