What Can I Keep in a Bankruptcy - thoughts of an attorney serving Wellsboro, Tioga County, PA 16901
In Chapter 7 bankruptcy, exemptions determine what you can keep. These include your home, car, personal belongings, bank accounts, cash on hand, investment accounts, 401(k) guns, four wheelers, tools of the trade – and the list goes on. If your property is exempt, you may keep it. If property is nonexempt, the trustee may sell it to pay your unsecured creditors. That is why it is important to hire a bankruptcy attorney who understand exemptions and how to protect everything that you have.
Each state has its own bankruptcy exemptions. If you live in Wellsboro, Tioga County, PA 16901, for example, the state bankruptcy exemptions available to you will be different from those if you lived in New York. Some states require that you use the state exemptions. Some states, however, such as Pennsylvania allow your bankruptcy lawyer to use federal exemptions that differ from the state exemptions. In Pennsylvania, the state exemptions are very stingy so almost universally your attorney will use the more generous federal exemptions.
How Bankruptcy Exemptions Work
Exemptions set a dollar amount for certain classes of property that are protected. If the equity in that asset is worth less than that, then you can keep that piece of property. For example, if your car is worth $3,000 and your state has a vehicle exemption of $4,000, then you will be able to keep the vehicle under a Chapter 7 Bankruptcy regardless of whether you live in Wellsboro, Tioga or anywhere in Tioga County or the State of Pennsylvania.
Determining Your Exemptions
To determine what property you will get to keep if you file for Chapter 7 bankruptcy, start by making an inventory of your property and each piece of property’s replacement value. Then compare the value to your state’s exemption, if any, for that type of property. If your state offers a choice between systems, do this for each system to determine which one allows you to keep the property that matters to you.
If you are facing something you cannot handle by yourself or you are ready to quit. If you are facing a mountain of debt you cannot pay, don't give up. Call our attorneys. We serve Wellsboro, Mansfield and all of Tioga County PA. We will help you figure out how to get out from the medical bills, loans, credit cards, business debts or whatever the debt is. Our bankruptcy attorneys care passionately about helping people to be debt free. Let our bankruptcy attorneys work for you!
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