For individuals facing crushing debt, every day can be stressful. Personal bankruptcy options exist to help struggling consumers facing the weight and stress of overwhelming debt. It provides layers of protection struggling consumers considering filing for bankruptcy should be familiar with, including bankruptcy exemptions.
Chapter 7 bankruptcy is a liquidation bankruptcy option that allows the filing party to liquidate assets to repay creditors and enjoy debt relief. Only property that is not exempt from the process is liquidated during a Chapter 7 bankruptcy. Property that is not exempted is generally turned over to the bankruptcy trustee for liquidation to repay creditors. Property that is considered exempt is generally property that relates to the necessities of life.
The list of potentially exempted property that is generally exempt from the Chapter 7 liquidation bankruptcy process includes items such as a certain amount of value in a car, a portion of equity in the filing party’s home, and household appliances. It may also include reasonably necessary household furnishings and goods, reasonably necessary clothing, jewelry up to a certain value and more. Wild card exemptions may also be available in some situations. Certain property is not exempted and it is also helpful for the filing party to be familiar with non-exempt property as well.
Personal bankruptcy protection can serve as a resource to help guide a struggling consumer through a difficult period of time in their life. Knowing how that process works, and what property they may be able to keep, is an important part of the Chapter 7 bankruptcy process for those considering bankruptcy protection to familiarize themselves with.
