When you file for bankruptcy, you do not have to relinquish your home and vehicle to pay for your debts. Instead, you are able to keep exempt assets that are necessary for living. But, of course, your allowed assets change according to what kind of bankruptcy you undergo. Let’s break it down.
Assets After Bankruptcy
In Chapter 7 bankruptcy, some of your non-exempt assets may be liquidated and used to pay off your debts. But even this does not include your home and your primary vehicle. Here is a list of non-exempt assets that are subject to liquidation:
· A second vehicle
· A second home
· Expensive instruments
· Lavish furniture
· Heirlooms
· Investment accounts
· Life insurance payouts
· Valuable collectible items
No matter the sentimental value, costly items will be collected and liquidated during a Chapter 7 Bankruptcy proceeding. You can talk with a lawyer about valuable assets before filing for bankruptcy and see if you can find an alternative to your debt crisis.
How Exemption Works
Each person filing for bankruptcy is subject to keeping specific assets and property necessary to day-to-day life. A judge will ultimately determine if an item is exempt or not if it is up for question. Here are some examples of exempt assets:
· A primary home
· Household items and appliances
· Everyday clothing
· A motor vehicle, non-luxury
· Jewelry up to a certain amount
· Pensions
· Tools for work
· Welfare benefits
· A payout from a personal injury
You do not have to give up everything you own when you file for bankruptcy. It may take some planning to build back after bankruptcy, but you will still have a roof over your head. Keep in mind that hiding assets can lead to severe consequences. It is always wise to consult with a trusted lawyer before making any poor decisions regarding bankruptcy.
At Miles & Hatcher, LLP, we can assure you that you will not lose your vehicle and dwelling place after bankruptcy. As a result, you do not have to live in fear, wondering who will show up and kick you out on the street once you have filed. Instead, you can put your worries at ease by calling for a free consultation: (909) 481-4080.