How Can A Bankruptcy Attorney Help Me Keep My Assets?
Filing for bankruptcy does not automatically mean that a person will lose all assets, including a home or their vehicle. Instead, bankruptcy law offers alternatives to turning over assets in both Chapter 7 and Chapter 13 bankruptcy. For example, some exemptions protect specific types of property, such as a vehicle. Exemptions can cover the entire value of an asset or only a certain portion of it. If you are able to exempt an asset, you do not have to worry about it being taken from you when you file for bankruptcy.
However, it is important to understand that these laws are complicated, especially in California where there are two different exemption schemes. It is important to have the help of a bankruptcy attorney before you try to file bankruptcy or protect your assets with exemptions.
Keeping Property Under Chapter 7 and Chapter 13
The type of property you are able to keep depends in part on the type of bankruptcy you file:
- Chapter 7 – In Chapter 7 bankruptcy, assets are usually sold to pay creditors. However, any assets that are exempt may be protected. Your attorney can help you determine if you can save any of your property or assets with a Chapter 7 bankruptcy.
- Chapter 13 – In Chapter 13 bankruptcy, you are generally allowed to keep property that you pay for under the reorganization plan. Your attorney can help you determine what assets should be a part of your repayment plan and help you set manageable monthly payments to the trustee.
When you are ready to file for bankruptcy, remember that both Chapter 7 and Chapter 13 allow for certain exemptions. This can help ease some stress when filing.
How a Bankruptcy Attorney Can Help
To really learn how bankruptcy works, including what you can exempt in your state and even what type of bankruptcy you should file, talk with a bankruptcy attorney. The team at Amerio Law Firm in Sacramento understands how stressful and confusing bankruptcy can be and can offer you help from highly trained and experienced bankruptcy attorneys.
Our attorneys can help you determine the most appropriate course of action for your legal issue. If you are in major debt and feel like there is no way out, bankruptcy might be the answer. To find out, speak to a bankruptcy attorney at Amerio Law Firm who will address your individual situation and help you determine your next step.