Bankruptcy Exemptions
About Exemptions
When an individual decides to declare bankruptcy they will have to determine whether Chapter 7 or
Chapter 13 will suit them best. Chapter 7 bankruptcy focuses mainly on
discharging debts while Chapter 13 bankruptcy is centered on a payment plan which is manageable to the individual. For many, having the opportunity to repay debts at a lower rate is extremely valuable. Both types of bankruptcy include exemptions that can make the bankruptcy process much easier to handle. During Chapter 7 bankruptcy, many of the individual's assets will be seized and liquidated in order to pay off creditors. Many of these assets, however, will be exempt from bankruptcy proceedings. Those assets that are considered non-exempt will eventually be liquidated and used to pay off debts. If there is a remaining debt after liquidation, it will be waived by creditors. An
Orange County bankruptcy attorney can help those that are considering bankruptcy and would like to know their options.
Bankruptcy Lawyer in Orange County
Certain federal and state laws protect individuals from having to liquidate all of their assets in order to pay off creditors. Anyone that has concern over which assets they can keep should speak with a bankruptcy attorney in order to better understand what assets will be considered exempt. In general, the following assets are exempt from bankruptcy proceedings:
- Homestead (home and land)
- Personal property including: food, furniture, upholstery, clothes, jewelry, and more
- Automobiles
- Household pets
- Most types of income
- Retirement accounts
With so many possible exemptions, anyone that has been dealing with debts may be able to file for bankruptcy and keep many of their assets. Speaking with an experienced bankruptcy attorney from the firm may be the best course of action during this time. The Law Offices of Joseph M. Tosti has helped many individuals to successfully file bankruptcy and move on with their lives.
Contact an Orange County bankruptcy attorney
from the firm today.
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