Which One of My Assets Am I Allowed to Keep When Filing for Bankruptcy?

When you file for personal bankruptcy, you are requesting an opportunity to gain a financial fresh start. If you are filing for a chapter 7 bankruptcy, most of your debts will be discharged. If you are filing for a chapter 13 bankruptcy, you will have the opportunity to pay off many of your debts over a period of three to five years.

Although some of your assets may be sold, or liquidated, to pay off your debts to your creditors, bankruptcy exemptions protect a certain portion of your property so that you can begin anew once the bankruptcy process is complete.

California has two separate exemption schemes. You may not mix and match items between the schemes but instead pick just one. Our Los Angeles bankruptcy attorney can help you decide which exemption scheme may be best for your situation. Commonly, exemptions include but are not limited to:

•    Your homestead: A portion of the equity in your primary residence may be exempted.
•    Personal property: Personal property includes furnishings, household goods, clothing, jewelry, and more.
•    Insurance
•    Pensions
•    Public benefits
•    Tools of your trade
•    Wages
•    Miscellaneous: Alimony, child support, or a Wild Card exemption, which is a specific dollar amount that may be used for anything

Although some states allow debtors to choose between federal exemptions and state exemptions, California does not. Married couples who are filing for bankruptcy together may be able to double their exemptions, or claim the full amount of some exemptions individually. Hamid Soleimanian, our bankruptcy lawyer, can help you determine if that is an appropriate option in your situation.

If you are considering filing for personal or business bankruptcy, you can benefit from the seasoned advice of our attorney who has helped many others through similar situations. Contact our bankruptcy lawyer in California today for your consultation.

Source: Bankruptcy Lawyer Los Angeles

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