Understanding The Benefits Of Bankruptcy Exemptions
Many Maryland families fear bankruptcy because they mistakenly assume that it will strip their family of all possessions. Bankruptcy is intended as an important tool for families to regain financial control; it was not designed to take all of your assets. Therefore, bankruptcy allows for exemptions that protect a family’s ability to hold onto certain property items entirely or assets up to a predetermined value.
How Are Exemptions Used In Chapter 7 Bankruptcy?
While Chapter 7 bankruptcy liquidates certain assets in order to repay debts, key items are exempt from liquidation. Typically, primary residences and cars are exempt up to a certain equity value. As long as your assets remain at or below that value, you will be able to keep them. Other commonly exempt items include furniture, household appliances, clothing and limited amounts of jewelry.
Federal and state laws work together to determine exemption levels. You are able to determine whether you would like to utilize the federal exemptions or the state exemptions. Our skilled attorneys can help you clearly determine what your family is entitled to. We can strategically employ the federal and state laws in order to maximize the amount of property that you keep.
How Do Exemptions Work In Chapter 13 Bankruptcy?
While exempt items remain consistent, exemptions work differently under Chapter 13 bankruptcy than Chapter 7 bankruptcy. Instead of protecting assets from liquidation, exemptions determine how much of your nonpriority debts you will have to pay your creditors. This will affect the amount of your repayment plan’s monthly payment.
Contact Our Firm For A Free Consultation
We understand how overwhelming bankruptcy can seem. Our compassionate lawyers will explain how filing for bankruptcy will affect your family, and we will provide you with all of your options. We have helped Maryland families for the last 25 years and would like to help your family find a fresh start.
Call our main Towson office at , or email us today.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.