Bankruptcy exemptions are an important aspect of Chapter 7 personal bankruptcy protection to be familiar with. Chapter 7 bankruptcy protection involves liquidating assets to repay creditors but not all assets must be liquidated and that is important to know.
Chapter 7 bankruptcy exemptions protects certain types and categories of property from the Chapter 7 liquidation process. Struggling consumers and filing parties are still able to enjoy personal bankruptcy protection and receive a fresh financial start but may be able to protect homes, cars and personal property while still receiving a debt discharge. Protections are available through bankruptcy exemptions.
Through the Chapter 7 bankruptcy process, the filing party can protect a certain amount of value in a home under the homestead exemption and also protect a certain amount of value in a vehicle and other items such as jewelry and personal property. Wild card exemptions may also be available to allow the filing party to protect categories of property that have reached the limit for the protection for that category and or are not included in the exemption categories.
Chapter 7 bankruptcy protection is not designed to force the filing party to start from scratch but rather to allow them to enjoy debt relief while protecting certain property. It is essential for struggling consumers to understand their personal bankruptcy protection options, how they work and which one is best for them. There are different types of professional bankruptcy protections that can help struggling individuals find relief from overwhelming debt to enjoy a fresh financial start.