Today the Sader Law Firm addresses another common bankruptcy misconception: “I want to file a Chapter 7, but I don’t want to lose my property!”
I spoke to an individual recently who insisted that he wanted to file a bankruptcy case under Chapter 13 rather than Chapter 7 because he didn’t want to give up his car. After talking with him for a few minutes, I told him that he didn’t have to give up his car or any of his other property for that matter. While Chapter 7 is sometimes called a “straight bankruptcy” or “liquidation,” the fact is that the overwhelming majority of my clients do not have to give up any of their property in Chapter 7. How can that be?
The Bankruptcy Code allows debtors to keep a certain amount of property through state law exemptions and typically, the value of the debtor’s property does not exceed those exemptions. For example, a married couple filing for Chapter 7 or 13 in Missouri is entitled to keep up to $6,000 worth of home furnishings and clothing. With the way personal items such as these depreciate, it’s not hard to see why folks are able to retain all their property after filing for bankruptcy protection.
Determining which assets are exempt in bankruptcy is one of the most important considerations in any bankruptcy case and the attorneys of The Sader Law Firm have the experience and knowledge to maximize the assets you keep through your bankruptcy case. So call today at (816) 561-1818 or contact us online to learn how we can leverage the exemptions in your state to protect the assets you have worked so hard to acquire.