Bankruptcy Exemptions in Chapter 7 Bankruptcy

: Reese Baker & Associates

  Filed under: Chapter 7

keyEven though you are in a tough financial situation to the point where you have to declare bankruptcy you most likely do have some possessions. These are what you have been struggling to protect as your financial situation became uncontrollable. Now if you are going to end up losing these by going bankrupt what is the point of going this route?

Asset Exemptions

There are some properties that you own that will most likely come under the bankruptcy exemptions no matter whether they are the State’s or the Federal ones.

Your State will have a list of exemptions on it with an amount attached to it that is exempted. So if you have a vehicle that you have declared is worth $2,000. And the State exemption allows up to $4,000. Then your vehicle would be exempted, so you would get to keep it. If it happens to be worth $10,000, then it most likely will be sold. You would then receive the exempt amount and the rest would go towards your creditors.

While the vehicle is one of the most common concerns when it comes to bankruptcy, the home is another. Then following this it’s the contents of a home like the furniture and personal belongings. These are personal attachments to these as well as their monetary value. You need to use the services of a Houston bankruptcy lawyer to help you fully understand as to what exemptions will apply to your bankruptcy case and what is at risk.