Chapter 7 Bankruptcy Exemptions

Posted by on Jun 1, 2013 in Financial, Legal Issues | 2 comments

http://www.beustring.com/When a person’s debt loads become too much for their financial situation to support, it may be necessary for that individual to seek bankruptcy protection in order to return to financial solvency. However, there are several different forms of bankruptcy which an individual may pursue, depending on their financial situation and the state in which they live.

One popular form of bankruptcy, Chapter 7, involves the liquidation of an individual’s assets in order to completely erase all but a few forms of debts. While this option may sound intimidating, many debtors ultimately find it to be the best route. This is particularly true because of the considerable exemptions that individuals pursuing Chapter 7 bankruptcy may enjoy.

The following are some of the various types of property exemptions that individuals undergoing Chapter 7 bankruptcy may be able to use to protect their most important assets, depending on the state in which they live:

  • Ÿ  Homestead exemptions, which allow debtors to exempt certain levels of equity in their homes from bankruptcy proceedings.
  • Ÿ  Vehicle exemptions, which allow debtors to exempt certain levels of equity in their vehicles.
  • Ÿ  Work equipment exemptions
  • Ÿ  Family heirloom exemptions

These and other property exemptions can help to make Chapter 7 bankruptcy a manageable choice for many debtors.

2 Comments

  1. I can imagine filing for Chapter 7 bankruptcy can be a scary situation, but being informed with the various types of property exemptions will help ease the process.

  2. Thanks!

Leave a Reply

Your email address will not be published. Required fields are marked *