What Property You Can Keep in a Bankruptcy
One of the first things people want to know when they are considering filing for Chapter 7 bankruptcy is if they are going to lose everything. The answer is "No." The law allows you to keep certain property that is necessary to live a normal life. What you can keep is defined by specific guidelines that can be a bit complex. An experienced bankruptcy attorney can help to make sense of it all.
At the Louisville, Kentucky, Law Office of Robert J. Morrison, I offer my clients more than 30 years of experience in the practice of bankruptcy law. I can help you understand the pros and cons of filing for Chapter 7 and give you an idea of what you can keep after bankruptcy. While you may be required to give up some of your property, you will not be left with nothing.
Exempt Property in Bankruptcy
In Chapter 7 bankruptcy, nonexempt property may be sold in order to repay creditors. This excludes what is referred to as "exempt property," that is property you are allowed to keep according to the law. There may be monetary limits on what you can keep in each category. This can be discussed in more detail at your initial consultation.
Categories of exempt property include the following:
- Equity in a residence
- Household furnishings and appliances
- Car
- Jewelry
- Tools of your trade
- Pensions
- Public benefits like welfare, social security or unemployment
- Personal injury award damages
- There is also an extensive "wild card" exemption category that can be used to exempt property of any kind.
Call for a Free Initial Consultation
Contact me today to discuss your questions. You will speak with a lawyer, not a paralegal. I am available during regular business hours and by appointment at other times. You can reach me by phone at 877-388-6425 or via e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
