Will I Lose My Stuff?
When filing bankruptcy, having a bankruptcy attorney can be invaluable in helping a debtor keep as much property as the bankruptcy exemption laws will allow. A local bankruptcy attorney will be well-versed in the state exemption laws and know what is acceptable by the bankruptcy trustee. With well over 1 million people filing chapter 7 every year, most debtors are excited to hear that they are not going to lose everything. In today’s economy, the court is not interested in taking non exempt property unless it has substantial value and can be easily liquidated. When filing bankruptcy the debtor has the choice to use the federal exemptions or the state exemptions. This is where a bankruptcy attorney is king. They will know the debtor’s complete situation and be able to choose the exemption laws that will best benefit the bankruptcy filer. This can be instrumental to the debtor as the bankruptcy attorney will know how to protect the individual’s assets to the maximum.
When looking into the bankruptcy code, every state will have its own bankruptcy exemption laws. Most states have substantial exemption amounts for homesteading when trying to protect one’s home. Retirement pensions and life insurance are also protected. This is because it would be impossible for someone of retirement age to file bankruptcy and still survive if the pension was taken. Another large exemption for most states is for an automobile, household goods and work tools. Wildcard and jewelry exemptions vary from state to state. Usually, a bankruptcy attorney saves the wildcard exemption to put extra items in that category after all the other exemptions are used. The bottom line is, the bankruptcy trustee does not want to pick up a truckload of old household goods and take him to the flea market to sell. The time involved to liquidate these items is counterproductive. Knowing the exemption laws and how they benefit each individual situation is invaluable and that’s why a bankruptcy attorney has an important role in a bankruptcy filing.
Filing for bankruptcy may be the most responsible way to alleviate financial debt without losing everything you own. If you’re interested in seeing if bankruptcy will work for you, take a moment and fill out the form below to speak with the local bankruptcy attorney for a FREE NO OBLIGATION CONSULTATION.