How exemptions can give you stability post-bankruptcy
A lot of people are facing financial struggles. Inflation has increased their everyday bills, and unexpected expenses, like those tied to medical care, can quickly eat away at your savings. If you’re in that situation, you might be wondering what you can do to protect your financial interests.
Chapter 7 Bankruptcy might be right for you
One effective way to secure debt relief is to pursue a Chapter 7 bankruptcy. This type of bankruptcy, known as liquidation bankruptcy, can eliminate many of your debts. But that leaves many people wondering if they’re going to be left with nothing once all is said and done. This thought can be especially troubling to immigrants who have worked hard to come to America and establish their lives here.
Chapter 7 bankruptcy exemptions
The good news is that you can clear the bankruptcy process with some assets still intact. You can achieve this by using bankruptcy exemptions. These exemptions include:
- Up to $25,000 in a homestead exemption
- Up to $6,000 in equity that you have in a car
- Up to $10,000 in tools, equipment and machines that are part of your trade
- Up to $5,000 of personal property or additional residential equity, although that amount increases to $10,000 if you’re 65 or older
- Up to $1,000 worth of clothing
- Up to $5,000 in furniture
- Up to $5,000 in family heirlooms
- Any amount held in a health savings account
- Any amount held in a spendthrift trust
These are just some of the exemptions that you can use. You may be able to protect other assets, too, such as your retirement accounts. You just have to know how to effectively navigate the bankruptcy process.
Legal help is here if you need it
Are you ready to escape the overwhelming debt that you’re facing? If so, you might want to consider reaching out to an attorney to learn more about the bankruptcy process and what it can do for you. Hopefully, you can secure the fresh financial start that you want.