Chapter 7 Bankruptcy Explained
What Do You Get to Keep in a Chapter 7 Bankruptcy?
Did you know that a Chapter 7 bankruptcy doesn't mean that you lose all your assets? Many people are afraid of having to lose all their hard-earned property, but that's not actually how it works. Here's what you need to know before you contact a chapter 7 bankruptcy attorney.
The Exemptions Under a Chapter 7 Bankruptcy
Your primary residence. Usually, you have an exemption of a certain amount towards your primary residence's equity. If you are over 65 or disabled, your exemption is $175,000. If you have a child or a spouse living with you, your exemption is $100,000. If you are single, your exemption is $75,000. So if you owe $200,000 on a home valued at $300,000, the $175,000 and $100,000 exemptions would definitely cover it. There are a number of factors which are used to determine the likelihood that a Trustee would be able to sell your property and, although there would be some risk that a Trustee would sell with only a $75,000 homestead exemption, it is not likely.
If the amount of the exemption exceeds the value of the property, it is clear that you will be able to keep the property, such as where your only car is worth $3,000 as your exemption will exceed that value.
Your personal property. Generally, there is a flexible exemption for a certain amount of personal property. For instance, your home furniture and furnishings are protected to the extent that they are reasonable and normally found in a home.
Your retirement accounts. You generally keep your retirement accounts, such as 401(k)s, during Chapter 7 bankruptcy. Your attorney will be able to review your retirement accounts to determine whether there are any issues in this regard.
How Do I Find a Chapter 7 Bankruptcy Attorney Near Me?
All three attorneys at Heston & Heston are highly qualified and knowledgeable in the area of bankruptcy law. After a free initial consultation where the attorney will gain information concerning your, debts, assets, income and other relevant matters, your attorney will be able to make recommendations concerning your best bankruptcy or non-bankruptcy options.
Contact us at Heston & Heston today to schedule your free initial consultation.