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"Exempt Properties" Clarified

The Court recognizes that people still need certain property to get back on their feet and start repairing their financial situation.

To provide for this, the Court has listed certain types of property that cannot be seized to sell off and repay creditors.

Some examples of this are:

- a place to live (home or apartment)

- a means of transportation (a car or vehicle up to a certain market value)

- "tools of trade" (tools necessary for the person filing to continue to pursue a particular trade/profession)

- certain types of jewerly up to a certain value (this is because jewelry can have a lot of sentimental value)

- alimony, child support payments

- certain types of insurance payments

(This is not an exhaustive list, it is intended to give you an idea of the types of property that are exempt)

 

Time For A Fresh Start!

Sometimes debts can become so overwhelming that the most practical way to move forward is to start with a "clean slate".

This "fresh start" does not mean solely in a financial sense. Debt can sometimes feel like a crushing weight that affects every facet of your life. Once this burden has been lifted, you may feel reenergized and motivated to achieve new heights.

 

 

 

What Are Your Options?

Researching how to file for bankruptcy on your own is likely the furthest thing from your mind. Let someone provide compassionate guidance every step of the way to help you get through a difficult time and make it just a little less stressful.

 

Chapter 7 or Chapter 13?

Chapter 7 bankruptcy is the more common type of bankruptcy and involves all of your unsecured debts being discharged/waived (Student loan debt is VERY UNLIKELY to be discharged!). To obtain this discharge, assets that are not considered exempt property are sold off to pay the creditors as much as possible. In practice, most property is kept by the debtor because it either falls under an exempt property code section, or it is not worth the transaction cost for the Court to seize and then resell. Eligibility for this form of filing is based on your income over the past year.

Chapter 13 bankruptcy means that your debt is not discharged, but your repayment terms are modified in light of your changing financial circumstances. This type of bankruptcy often results in a subsequent chapter 7 filing because the restructured plan does not work out. This can still be a useful option if your income makes you ineligible for a chapter 7 filing as it will give you a less stressful repayment schedule for your current debts. Also, Chapter 13 works like a form of loan consolidation because you will make payments to a trustee appointed by the court who will then distribute your payments amongst your creditors. Lastly, similar to a Chapter 7 filing, it will make it illegal for creditors to call you/contact you about repayment.

Call For Free Consultation

(515) - 974 - 7327

Evening and Weekend Appointments Available

 

 

We are a debt relief agency. We can help people to file for Bankruptcy under the Bankruptcy Code.

Anything presented on this website is intended for informational purposes only. Nothing should be interpreted as legal advice and you should consult an attorney if you want specific legal advice for your particular situation.


Copyright 2012 Wu Law Firm, LLC