Properties To Keep When Filing A Bankruptcy
What types of property can I keep after filing for bankruptcy?
Some people fear losing their assets during bankruptcy, but this is only sometimes the case. There are many ways to keep the property exempt after filing for bankruptcy. The first step is to talk with a bankruptcy attorney, who can help you understand your options. This can be a helpful way to protect your assets while regaining control of your finances. The second step is to determine your exemptions.
Exempting A Property From Bankruptcy
In some states, the law allows you to keep certain types of property when you file for bankruptcy. You can keep the types of the property depending on the bankruptcy code you file under. The main exceptions are real estate, vehicles (without liens), and business assets.
Types of Bankruptcy Code
There are four main types of bankruptcy codes: Chapter 7, Chapter 13, Chapter 11, and Chapter 12. The particular property is protected from creditors in each case.
Your bank account and retirement funds are often exempt. You can also keep your car, especially if needed to get to work. However, the vehicle is usually not exempt if the car is not required for everyday use. You can also keep artwork, jewelry, and musical instruments if these items contribute to your livelihood.
Your state may also have its own set of exemptions. These exemptions can help you keep most of your personal property. These exemptions can include items such as a home, a car, and tools and equipment needed for your job. These exemptions may include retirement savings, such as 401(k) plans. You may even be able to include your inheritance from a deceased family member. However, this exemption may not cover your entire estate.
Wild Card Exemption
In some states, a "wild card" exemption is available. This means that you can claim a large number of exemptions. These exemptions can include vehicles, tools, furniture, and appliances. There are also exemptions for collectibles, such as antiques, jewelry, and boats. You can also keep a car necessary to get to work or take your children to school.
Some bankruptcy trustees will try to object to your exemptions. If your property is considered non-exempt, your trustee can sell it to pay off creditors. This can be a fraudulent practice, as you are not giving your property to a creditor for its fair market value. If the trustee believes your non-exempt property is not worth the sale price, he may refuse to sell it. In addition, your trustee may decide that your property is too difficult to sell.
Talking to an attorney lets you find out what types of property are exempt.
Bankruptcy Attorney Free Consultation
If you are looking for a legal advice about filing a bankruptcy or in need an attorney, call this law firm for free consultation. We have the Best Attorneys in Utah.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
https://www.ascentlawfirm.comDisclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.
