Is There Any Way to Protect My Property During Bankruptcy?
Oct. 28, 2016
Every person’s path to bankruptcy is unique. Residents of Garnerville may find themselves contemplating the bankruptcy court’s protections because of unforeseen expenses, changes to their life plans or simple financial mismanagement. As different paths to bankruptcy may require individuals to make different considerations about their future goals, readers of this post are encouraged to discuss their needs with their personal bankruptcy attorneys and not rely on the content of this post as legal advice.
As suggested above, how one ends up filing for bankruptcy can dictate which form of bankruptcy protections he or she should pursue. For example, an individual who wishes to eliminate his or her debts all at once and have a fresh state may opt to file for Chapter 7 bankruptcy. During a Chapter 7 bankruptcy filing, a person is required to sell off some of the items he owns so that the proceeds may be used to satisfy his debts. Exemptions may protect some of his items of property but ultimately he will have to part with some of his possessions in order to achieve financial freedom.
Alternatively, a person who is more interested it managing his debt over time may opt to file for Chapter 13 bankruptcy. In a Chapter 13 bankruptcy process a person reorganizes his finances and establishes a repayment plan to begin chipping away at his outstanding financial obligations. In essence, a person may be able to protect more of his property through exemptions and reorganization in a Chapter 13 filing than in a Chapter 7 process.
In sum, an individual’s goals may dictate which form of individual bankruptcy will better serve his needs. Once he knows what he wishes to accomplish through bankruptcy he may be able to utilize the state or federal exemption laws applicable to the form of bankruptcy he will utilize. Readers may wish to contact their attorneys to dig deeper into this important area of the law.