Bankruptcy exemptions are an important part of the Chapter 7 bankruptcy process. Because they provide protections for the filing party, bankruptcy exemptions are essential to understand. In general, Chapter 7 bankruptcy protection allows the filing party to liquidate non-exempt assets to repay creditors which is why it is important to understand which property is exempt from that process.
Property that is generally exempt from the Chapter 7 bankruptcy process includes vehicles up to a certain value; a home up to a certain value; pensions; household appliances; reasonably necessary household goods and furnishings; reasonably necessary clothing; jewelry up to a certain value; tools of the filing party’s trade up to a certain value; a portion of unpaid but earned wages; public benefits; and a personal injury settlement or award.
Property that is not exempt from the Chapter 7 bankruptcy process includes expensive musical instruments, unless they are used in the course of the filing party’s profession; stamp, coin or other valuable collections; family heirlooms; a second vehicle; a second home; or cash, bank accounts, stocks, bonds and other investments.
Bankruptcy exemptions are an important part of the bankruptcy process to understand because they provide important protections for the filing party. Chapter 7 bankruptcy protection is intended to help individuals struggling with overwhelming debt and bankruptcy exemptions ensure they can enjoy debt relief without having to start from scratch. Seeking the assistance of an experienced attorney can be helpful for individuals with bankruptcy-related problems. With a solid plan of legal action, it’s possible to recover from such financial issues.