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Keeping Your Stuff In A Chapter 7 Bankruptcy By Using The Proper Exemptions

March 28, 2012 | Comments: 0 | Views: 89

Liquidation of one's assets is the legal proceeding that most people associate with when they think of a Chapter 7 bankruptcy. However, what many people don't realize is that when filing a Chapter 7 bankruptcy most debtors keep a lot of, if not all, of their personal property. This is through the use of bankruptcy exemptions and it varies from state to state. The federal government also has their own exemptions in a bankruptcy filing for protecting things such as retirement benefits. The federal exemptions also includes social security and veterans benefits, railroad workers, and foreign service workers.

The issue that keeps many people from filing bankruptcy is the fear of losing everything, so many individuals are relieved when they find out that personal assets generally are protected under the bankruptcy laws. Personal assets that are usually protected include furniture, clothes, appliances, electronics, ordinary household goods, jewelry, and personal effects. Equity in one's home and life insurance may also be exempt under the law. The thing to keep in mind is that each state determines the amount of personal property that the debtor can keep when filing bankruptcy through the use of its exemption laws. A lot of people who don't consult a bankruptcy attorney spend countless hours on the internet trying to research and decipher bankruptcy exemption laws for their state. Seeking the advice from an experienced local bankruptcy attorney to answer questions regarding the individual's personal financial situation is crucial.

A bankruptcy attorney that practices in the area that the debtor resides in will be familiar with the correct bankruptcy exemptions to use in the bankruptcy filing so as to allow the debtor to retain as much personal property as possible. If the debtor wants to keep secured property such as a car or their home, the bankruptcy attorney can assist the debtor in renegotiating and or reaffirming the debts to make it possible.

When filing bankruptcy many folks worry about the cost of hiring a bankruptcy attorney. If you consider the amount of debt that the average person wipes out versus the cost of the attorney to file Chapter 7 bankruptcy, it is really quite a value. Considering the pros and cons is something that every individual needs to do on their own before making the decision to file. Most people with large amounts of unsecured debt feel like the way the world was lifted off them when they get their bankruptcy discharge in the mail. Filing bankruptcy is not meant to be a punishment to individuals who got into financial trouble by taking all of their property. Bankruptcy was created to give honest hard working people a fresh start financially.

The author started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.

Source: EzineArticles
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