What Assets Can You Keep After Bankruptcy?

Attribution: Mike_tn

With the economic downturn forcing many people to consider Chapter 7 many law firms are expanding their bankruptcy department to accommodate the increase in clientele. However, many of these people considering bankruptcy fear that conceding bankruptcy means that creditors are necessarily going to claim much of their finances, assets, and maybe even their home.

The truth is that there are many federal and state laws in effect that protect debtors from this kind of savage repossession that the creditors are known for. In fact, some of your most valuable and important assets can be protected, depending on which state you live in.

Here's a recently published article from a law website that discusses some assets that may qualify for an exemption after bankruptcy. People might be relieved to see that their house, pensions, insurance, and even vehicles may be protected by their state's exemption policy. Hopefully a more thorough understanding of what you can expect to retain after bankruptcy will make you more confident in your financial decision.

Bankruptcy Process Chapter 7 & 13

Federal Rules of Bankruptcy Procedure or Bankruptcy Rules, govern all local rules of each bankruptcy court. There are over 90 bankruptcy courts across the US. Most of the bankruptcy process is administrative and less time is spent in front of a bankruptcy judge than you would think. A chapter 7 debtor may not even see a bankruptcy judge unless there is an objection in his/her case.

The process for Chapter 7: A trustee takes over all assets of the debtor estate, liquefies the assets and then pays off debtors. The debtor has a right to retain certain exempt property. The debtor is relieved of liability and debts are discharged.

The process for Chapter 13: This is a better option for bankruptcy, the debtor has the option of holding on to his/her estate. If the debtor has a consistent source of income and can make payments to his creditors.
The bankruptcy process is very complex and requires a professional attorney so help you through the process. Learn more here.

Contact your trusted attorney to find out the best option for your bankruptcy case.