In most bankruptcies, debt is either discharged or paid off over a period of time. In some bankruptcies, a portion of the debtor’s assets are used to pay off the creditors. At the Law Office of W. Thomas Bible, Jr., the overwhelming majority of our clients lose no assets when filing for bankruptcy. Bankruptcy law allows exemptions so that the people who file for bankruptcy can keep certain kinds of property. To determine how the law works in your case, it is important to consult with an experienced bankruptcy attorney.
Bankruptcy Property Exemptions
The law recognizes that when people file for bankruptcy, they still need basic assets and possessions to move forward after bankruptcy. This is why there are exemptions in the federal Bankruptcy Code as well as in the state bankruptcy statutes. An exemption is property you get to keep after filing for bankruptcy.
When you file for bankruptcy, you must include a list of all your assets, including a list of each item you are claiming as exempt, and the fair market value of each item.
The bankruptcy trustee and the creditors get a chance to review any property you claim as exempt and object to it if they have sufficient grounds. In most cases, however, it is clear which property is exempt and which is not.
Notable bankruptcy exemptions include a house, a car and tools of the trade. To gain a full understanding of which property you own is exempt in a bankruptcy, it is important to have your case reviewed by a qualified bankruptcy lawyer. Our attorneys will work with you personally to help you achieve your debt relief goals, while keeping as much property as possible under the law.