The thought of filing for bankruptcy can be frightening to many people. The stress of limited finances and creditor harassment can cause some to make poor choices, but these choices may only worsen an already serious situation. The way to avoid making further mistakes is to contact a bankruptcy law attorney who knows the right steps to take at every juncture of the process.
Learn More About Chapter 7 Bankruptcy
Most people who file for personal bankruptcy choose to do so under Chapter 7 of the Bankruptcy Code. If you are eligible for Chapter 7 bankruptcy, you can immediately stop creditor harassment and permanently eliminate certain types of debt within a few months.
I am Don Anderson, a Clearwater bankruptcy lawyer with more than 35 years of legal experience. Below is some basic information about Chapter 7 bankruptcy law. To discuss your case with a knowledgeable Florida attorney, contact my office to schedule a free consultation.
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If you have credit card debts, medical bills, home equity loans and other debts that you cannot afford to repay, filing for bankruptcy with the help of an experienced lawyer may be your best option for lasting debt relief. Contact me today to discuss your case with a dedicated attorney.
Due to the recent housing finance crisis, foreclosure rates in the Clearwater area, throughout Florida and nationally are at an all-time high. Filing for bankruptcy can immediately stop foreclosure in its tracks and may give you another chance to save your home in the long run.
Exempt vs. Non-exempt Property Under Chapter 7
In a Chapter 7 liquidation case, the debtor must relinquish certain property to the bankruptcy trustee so that he or she can sell the property and use the proceeds to pay off debts. Property of the bankruptcy estate is broadly defined under Section 541 of the Bankruptcy Code. The estate is technically the legal owner of all of the debtor's property and consists of all legal and equitable interests that the debtor has in property at the initiation of the bankruptcy case. Income that the debtor earns after the date of the petition is not included in the estate. Debtors, whether they are businesses or individuals, are often justifiably concerned about what property they will be allowed to keep and what they must give up. A bankruptcy lawyer at Law Offices of Don A. Anderson in Largo, Florida, can answer these and other questions, allay fears and keep the process moving forward as painlessly as possible.
A debtor must file a schedule of exempt property with the court. Exempt property is property that the debtor can protect from liquidation. The Bankruptcy Code allows each state to adopt its own exemption laws, which the debtor can select instead of the federal exemptions. It is important to consult with an attorney who can explain the exemptions available under your state's laws and how they compare to the available federal exemptions.
Non-exempt Property
Items that the debtor usually must forfeit include:
- Expensive musical instruments, unless the debtor is a professional musician
- Collections of stamps, coins and other valuable items
- Family heirlooms
- Cash, bank accounts, stocks, bonds and other investments
- A second car or truck
- A second home or vacation home
Exempt Property
Certain types of property are exempt, meaning that the debtor can keep that property. Exempt property includes:
- Motor vehicles, up to a certain value
- Reasonably necessary clothing
- Reasonably necessary household goods and furnishings
- Household appliances
- Jewelry, up to a certain value
- Pensions
- A portion of the equity in the debtor's home
- Tools of the debtor's trade or profession, up to a certain value
- A portion of unpaid but earned wages
- Public benefits, including public assistance (welfare), social security and unemployment compensation, accumulated in a bank account
- Damages awarded for personal injury
Speak to a Bankruptcy Lawyer
If you have questions about what property you will be allowed to retain if you file for bankruptcy under Chapter 7 of the Bankruptcy Code, it is prudent to seek the counsel of an experienced and knowledgeable bankruptcy attorney at Law Offices of Don A. Anderson in Largo, Florida, who can respond promptly and accurately and put your mind at ease.
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