If I File Bankruptcy, Do I Lose What I Own?
Cast aside, FOREVER, any images you may have of walking out of the Bankruptcy Court with a barrel around your waist, supported only by suspenders (Unless, of course, that was your apparel when you walked into the courthouse). Bankruptcy is intended to give people a FRESH START. And a FRESH START is difficult without a place to live, a vehicle to drive, and clothes to wear. In fact, it's darn near impossible.
To protect your property, a system of EXEMPTIONS is in place. These EXEMPTIONS identify the amount of equity that you will be permitted to have in property before you run the risk of having to turn over that asset to satisfy your debts. And even, if by chance, the equity of any of your property is greater than the EXEMPTION amount, you still get to keep the EXEMPTION amount.
The EXEMPTIONS apply, individually and in different amounts, to:
- your personal residence,
- your vehicle,
- your household furnishings,
- your apparel,
- your jewelry, art, collectibles,
- your work gear and equipment,
- your insurance policies,
- your retirement accounts,
- Personal injury claims,
- etc. etc. and so on
You are permitted to keep all that property to the extent that they do not exceed the EXEMPTION amounts. In many cases it means that you do not suffer a loss of any property whatsoever.
Call me NOW for a FREE consultation