What happens to assets when filing for bankruptcy?

Even though more than a million people file for bankruptcy each year, many myths continue to surround the process. One of the more common misconceptions is that you lose your assets after filing for personal bankruptcy. Facing overwhelming debt and bankruptcy is stressful enough without the thought of losing your belongings, too. What really happens to your assets when you file for personal bankruptcy?

Chapter 7 Bankruptcy

Hamid Soleimanian, bankruptcy attorney in California, will help you determine whether or not you are able to file for a chapter 7 bankruptcy, which will lead to your debts being discharged. A percentage of your property will be considered exempt, which means that it cannot be sold to pay debts.

Chapter 13 Bankruptcy

If you are not able to file for Chapter 7, you may instead be able to file for a Chapter 13. Chapter 13 allows you to create a payment plan through which you will repay your secured and some of your unsecured debts over the next three to five years. You are entitled to certain exemptions through a Chapter 13 filing as well.

Bankruptcy exemptions for either form of bankruptcy may include:

• A percentage of the equity in your home
• Equity in your vehicle
• Tools of your trade
• Furnishings and personal property
• Pension plans or life insurance policies
• Income, Social Security, and public benefits
• Necessary alimony and child support
• Wildcard exemptions

Assets that are non-exempt may be sold, based on the decision of the bankruptcy trustee. Many people emerge from bankruptcy with most or all of their assets intact.

In order to ensure the best possible outcome in your case, it is crucial that you are accurate and thorough when listing your assets and debts with bankruptcy attorney.

If you are currently considering filing for personal or business bankruptcy, contact Hamid Soleimanian, Los Angeles bankruptcy lawyer, today to learn more about your options and how best to preserve your assets.

Source: Bankruptcy Lawyer Los Angeles

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