Two of the major concerns that an individual has when going bankrupt is what is going to happen to all of the debt, and what is going to happen to all of the assets? Which bankruptcy you file for will determine the answers to both of these major questions, and the outcome will be much different in each of these bankruptcy approaches.
When it comes to chapter 7 bankruptcy, you will want to know what is going to be exempt in regards to your assets. The exemptions are really important to you because they help to exclude some of what you own from the bankruptcy. The goal is to obtain as many exemptions as you can as you won’t be at risk of losing these, nor can they affect the outcome of your bankruptcy.
There are many reasons why you would want to consider using a Houston bankruptcy attorney to assist you with your bankruptcy and the exemptions are one of these.
When you file for a chapter 7 bankruptcy your assets go into what is called a bankruptcy estate and a bankruptcy trustee is appointed to you who has the power to decide what to do with the assets in the estate.
Each state has its own rules as to what can be exempt. There are also Federal rules that apply to bankruptcy exemptions. Generally speaking usually an individual is allowed to keep a portion of their equity that they have built up in their home. Plus a primary vehicle may be subject to exemption.
What is important to keep in mind that each bankruptcy case is handled on its own merit. Don’t assume that your exemptions or outcome of your bankruptcy will be the same as someone else’s. Make sure you rely on expert advice throughout the entire proceedings of your bankruptcy.