Filing for bankruptcy can often seem like a very intimidating process and it even more stressful when you think that you may lose some of your property as a result of your filing status. Bankruptcy isn’t necessarily designed to strip you of your assets but rather it helps you to protect your rights, rebuild your credit and protect some of your essential assets. Working with a professional bankruptcy attorney will make sure that you can hold onto more of your valuables.
If you’re worried about losing property in a bankruptcy, consider more about the types of bankruptcy:
Under Chapter 13 bankruptcy filing you will keep every piece of property whether or not it’s exempt from liquidation from your creditors. When you agreed to a 3 to 5 year repayment plan, this will ensure that you can pay off a portion of your debt or all of your debt over time. What you complete your repayment plan you will have the rest of your dischargeable debts wiped out and the ability to hold onto the assets that are outlined as part of your protected items.
When you file under Chapter 7 filing, you won’t be required to pay back any of the dischargeable debts. In a very rare case, you might have to give up items that are deemed as non-exempt property. Certain exceptions are allotted under Chapter 7 bankruptcy and this will allow you hold onto funds in retirement accounts, tools you may need for your business, household property, a modest vehicle, and the equity in your home.
Filing for bankruptcy will help to protect your income and assets and it can prevent the chance that you might be evicted, your vehicle could be repossessed, your home could experience for closure, your utilities could be disconnected, your wages could be garnished, or ongoing collections will take place against your accounts.
If you’re adjusted in learning more about filing for bankruptcy and the property that you could lose, contact our staff today to learn more.
This post was written by Trey Wright, one of the best local bankruptcy attorneys in Tallahassee, Florida. Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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