When you are pursuing a Chapter 7 bankruptcy declaration, you’ll probably assume that you’ll need to sell all of your assets and belongings in order to repay your creditors. However, this is a common misconception.
Bankruptcy courts will typically allow debtors to retain their exempt property, or those assets that don’t need to be included when your assets and property are being liquidated. Below, we discuss some of the most common items that are exempt in Chapter 7 bankruptcies. If you have further questions, reach out to a qualified Indiana bankruptcy attorney.
Your exempt property will often consist of items that are necessary for you to live your life. Such property might consist of your vehicle, jewelry, clothing, household appliances and furnishings, your pension, some of the equity in your home, trade tools, public assistance benefits, and damages that are awarded in a personal injury claim.
It’s worth noting that each of these items are only exempt up to a certain value, depending on both the amount of debt you are in as well as your level of income.
The goal of bankruptcy court is to help debtors get out of the debt that has ruined their lives. Thus, it doesn’t make sense that the courts would take everything you own in a Chapter 7 bankruptcy declaration.
Any belongings that are not necessary for you to live or work will be considered nonexempt. Some of the different items that could be considered nonexempt include valuable family heirlooms, your second house or vehicle, the cash in your bank account, valuable collectibles, stocks, bonds, and even costly musical instruments such as a grand piano.
If you have questions about a particular item’s classification, you can address your concerns with your Chapter 7 bankruptcy lawyer.
Get in Touch with a Chapter 7 Bankruptcy Lawyer
Filing bankruptcy is often the last resort for the vast majority of debtors, and when you are living at poverty level, the last thing you need is to have everything taken from you in order to clear your name.
You can work with a Chapter 7 bankruptcy lawyer at Rowdy G. Williams Law Firm to ensure that you are choosing the right type of bankruptcy and to help you throughout the entire bankruptcy process. Schedule your free case review today by giving our office a call at 1-812-232-7400 or by filling out the brief contact form we have provided at the bottom of this page.