Chapter 7 Bankruptcy Exemptions
Protect Your Property: Know Your Chapter 7 Bankruptcy Exemptions
During your Chapter 7 bankruptcy filing, you’ll be assigned a personal bankruptcy trustee by the bankruptcy court. The trustee’s job is to make sure your creditors are paid as much as possible on what you owe them.
Since every case is different, a bankruptcy lawyer could be a good resource to help you sort out which of your property is considered legally exempt. To get in touch with a local bankruptcy attorney, simply fill out our free bankruptcy case evaluation form or call 1 (888) 632-0501, and we’ll do the rest.
Your personal bankruptcy trustee will examine your property to determine if any of your non-exempt property is of significant value. If the trustee finds anything, he or she is permitted to liquidate (sell) the property for the benefit of your creditors.
Although it’s uncommon, the Chapter 7 bankruptcy trustee may find that you have assets worth selling. The personal bankruptcy trustee will typically only do this if he or she decides it will result in a significant payment to your creditors.
Chapter 7 bankruptcy exemptions can protect your property from being sold during the Chapter 7 bankruptcy process.
Which of Your Items Are Exempt from Chapter 7 Liquidation?
Chapter 7 bankruptcy exemptions typically include a person’s:
- primary residence;
- mobile home;
- land owned;
- vehicle;
- work equipment and tools;
- insurance payouts;
- pension payments;
- public benefits (like workers compensation or unemployment money); and
- personal property (like furniture and clothing).
In most cases, Chapter 7 bankruptcy exemptions may protect all of your property. But know that exemptions vary from state to state, so it’s not safe to assume that all of your property is automatically exempt.
To connect to a local bankruptcy lawyer who can provide you with more information about Chapter 7 exemptions, all you need to do is fill out our free bankruptcy evaluation form or call 1 (888) 632-0501.
Upon receiving your information, we’ll connect you with a local bankruptcy attorney as soon as possible.