Filing for bankruptcy is a big decision with many considerations. One concern that many people have is they will have to give up everything they own including their house, vehicle, and bank accounts. Most people who file for bankruptcy get to keep all or at least most of their possessions. In Chapter 13 bankruptcy, people keep all of their assets; however, the value of the assets does impact their repayment plan.
With Chapter 7 bankruptcy, otherwise referred to as liquidation bankruptcy, the debtor keeps exempt and abandoned assets. Specific possessions and dollar amounts in the value of possessions are exempt and therefore the debtor retains these exempt items. These exemptions are state specific.
Ordinary belongings are rarely liquidated. This includes clothing, electronics, furniture, and appliances. It is unusual for a debtor in chapter 7 to lose their home or vehicle, the debtor should find out about any risk before filing. It is important to keep in mind that a chapter 7 can seek to convert to a reorganization bankruptcy such as 11 or 13 if a chapter 7 trustee unexpectedly seeks to liquidate an asset.
Bankruptcy is a powerful tool to deal with debt and financial hardship. There are other options as well. Contact Shoffner & Associates to determine the best path for you and your specific situation.
Please leave us a 5 Star Review on Google https://g.page/r/CY4vul4WgkwxEB0/review
Starting a NEW business or know someone that could use our help? Call your friendly neighborhood attorney today.
Freya Allen Shoffner, Esq.
Shoffner & Associates
Counselors to Small Business and Families.
Give Freya a call at (617) 369-0111 TEXT US (413) 207-6219 or email fashoffner@shoffnerassociates.com
Let us know your thoughts or suggestions in the comments please.
