Bankruptcy Exemptions for Chapter 7
Find Out if You Are Exempt!
In a chapter 7 bankruptcy, it sometimes becomes necessary to liquidate a person’s non-exempt assets in order to facilitate paying off creditors. Many people considering chapter 7 hesitate when they hear this, as they imagine that they may lose most or all of their possessions in the process of the bankruptcy. This is not the case, however, as there is property and assets that are considered exempt in a chapter 7 case. This means that they are protected from liquidation.
Some of the exemptions available in our state include a homestead to $5,000, or $7,000 in cases where there are joint owners. If you have 75% of earned wages that are yet unpaid they will not be liquidated. Any health or disability benefits are exempt from this type of bankruptcy as well. If you had property that you owned in a business partnership that will remain untouched. Furthermore homeowner’s insurance proceeds up to $5,000 are excused from liquidation. Any Books and “tools of the trade” up to $1,900 that you had for your business will not be included in this form of bankruptcy. Lastly, your personal assets, such as clothing, schoolbooks, pictures, and household appliances will not be taken from you during this process.
If you are considering a chapter 7 bankruptcy, but require information about your possible exemptions, it is to your benefit to contact a lawyer at Cain & Associates, PLLC today. In assisting thousands of individuals in navigating their chapter 7 cases, we have become very familiar with the exemptions that may be claimed in the state of Tennessee. We can sit down with you and review your finances and assets in order to increase your chances of abankruptcy filing that leaves most or all of your most treasured items in your possession. No one wants to lose their most valuable or prized possessions or have to hand over what is most dear, learn what is yours for the keeping and what can be liquidated.
You Don’t Have to do This Alone!
Since knowledge is power, it is generally advised that you file for chapter 7 bankruptcy with the help of a knowledgeable lawyer with experience in bankruptcy law. Should you file alone, you may remain unaware of certain exemptions that you are able to take, and therefore lose prized possessions in the liquidation process. A lawyer will ensure that any and all exemptions available to you are taken advantage of, resulting in a successful filing with few negative consequences. For further information regarding Chapter 7 exemptions feel free to contact our Nashville office.