Chief among the reasons why a person in serious financial distress might be hesitant to consider personal bankruptcy is the fear that doing so will somehow result in the loss of virtually all of their personal property.
Indeed, they may have visions of having their prized possessions sold at auction, handing over the keys to their automobile and, perhaps worst of all, watching a For Sale sign go up in their front yard.
While it’s certainly understandable how people could have these nightmarish visions, the reality when it comes filing for bankruptcy — and the ability to hold onto your property– is actually much different.
In Chapter 7 bankruptcy, an assigned bankruptcy trustee will gather certain assets and liquidate them, meaning they will be sold. The profits earned from the sale of these assets will then be applied toward your unsecured debts and the remaining balance will be discharged (i.e., eliminated).
By itself, this scenario likely sounds pretty frightening. However, it’s important to understand that the goal of Chapter 7 bankruptcy isn’t to leave you impoverished, but with a fresh financial start.
Indeed, it’s important to understand that there are actually generous state and federal property exemptions — you’ll decide which set to use — that enable you to keep your personal property up to a certain dollar amount.
At Robertson Law Firm, we understand how stressful the idea of filing for bankruptcy can be. That’s why we will take the time to examine the specifics of your situation, explain the law and carefully guide you through the entire process. Rest assured, we’ll work diligently to help you retain as much property as possible, and build a better tomorrow for you and your family.
Please visit our website to learn more.