Knowing Bankruptcy Chapter 7 Exemptions
What can you leave out of bankruptcy chapter 7 - car, home? Find out here
Knowing about the bankruptcy chapter 7 exemptions is very important. This will include the things that you should leave out when you are filing your petition in the local court of bankruptcy. In many instances, you will find that it is easy to file for bankruptcy without having to hire a bankruptcy lawyer. However, when you do not know what to leave out under chapter 7 bankruptcy, it is important to seek advice from a lawyer.
Usually, there are about three types of exemptions. One is the homestead exemption of course. Depending on what state you come from if you are in America, there are different laws regarding the limit on the value of the home. In others, there is no limit at all. If you own property together (jointly) with your spouse, you may have to follow a special procedure when filing for bankruptcy under chapter 7. In some cases, you will be required to continue paying mortgages to keep the home. Bankruptcy chapter 7 exemptions are best explained by a bankruptcy lawyer.
Under bankruptcy chapter 7 exemptions, there is the vehicle exemption. You are allowed to retain your vehicle as long as it has value that is lesser than what the state law on exemptions requires. It is easy to find out whether your vehicle will be exempted subtracting the money that you owe for it from the car’s market value. If the vehicle’s value is beyond the exemption value, and you would like to keep it, then you can pay the trustee the value that is above the exemption value. That way, you will qualify for bankruptcy chapter 7 exemptions.
There are more bankruptcy chapter 7 exemptions of course, and they include things like child support, trade tools, retirement plans and many other essentials. Note that coins and valuable collections will not be exempted. Before filing for bankruptcy under Chapter 7, it is very important that you contact a bankruptcy lawyer as mentioned before in this article.
Know all that is going to be exempted or not. It is to your advantage to understand what the implication of bankruptcy will be.