What Can You Keep in a Bankruptcy?
What are bankruptcy exemptions? The bankruptcy laws recognize that taking all assets and liquidating them can be overwhelming to the debtor — and prevent the fresh start that the debtor needs. Therefore many of your assets you can keep. Talk to a bankruptcy lawyer at Coggins & Johnston law firm in Roseville, California, about bankruptcy exemptions and how they will affect you.
Call (916) 797-1397 for a free consultation with a bankruptcy attorney.
Can you keep your car and your house?
After a bankruptcy, you still need a place to live and a way to get to work. If your house meets certain equity requirements and your car is beneath a certain value, they can be exempt from liquidation. The object of the law is to provide you with what you need without allowing you to profit from a Chapter 7 bankruptcy. An experienced attorney can explain the calculations used to determine home and car values.
Retirement accounts and pensions are exempt in a bankruptcy.
Bankruptcy exemptions include retirement accounts and pensions. That is why your bankruptcy lawyer will discourage you from using a retirement account to pay off some of your debts. It is rarely a good idea to use money put aside for retirement to pay off current debt. That may simply postpone a bankruptcy for a short time and cause problems in your retirement.
Other bankruptcy exemptions include clothing, jewelry, furniture and other items.
Items of great value likely will not be exempt, but the items you need for daily life will likely be exempt. Fur coats and large diamonds will most likely be liquidated to pay debt, unless you are able to use a wild card exemption, but a wedding ring and most clothing will be exempt. Contact an attorney about your personal property and exemptions.
A lawyer can explain how to best use your exemption rights.
The first consultation is free at Coggins & Johnston law firm. It will give you a chance to get answers to your questions and make an informed, educated decision about your future. No matter what your decision, we can help you end the financial struggle and get a fresh start.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
The Coggins & Johnston law firm in Roseville, California, represents bankruptcy and foreclosure clients in Sacramento, Roseville, Rocklin, Granite Bay, Lincoln, Citrus Heights, Davis, Rancho Cordova, Folsom, Woodland, Carmichael, North Highlands, Yuba City, Fair Oaks, Orangevale, El Dorado Hills, Auburn, Placerville, Gold River, Loomis, CA, and other communities in Placer County, Sacramento County, Yolo County, El Dorado County, Yuba County, Central California and Northern California.
