Chapter 7 Property Exemptions
Chapter 7 Liquidation & Your Assets
Chapter 7 bankruptcy works to help consumers who can't pay back their credit cards, medical bills, payday loans and other unsecured debts by offering a possible discharge of those debts.
However, before those debts may be discharged, a bankruptcy trustee has the power to liquidate (sell) your assets in order to pay back your creditors.
If you’re interested in filing Chapter 7 bankruptcy, you’ll want to know which of your assets may or may not be subject to liquidation.
Although the following information provides a nice introduction to assets that are typically exempt from liquidation, it's a good idea to speak with a local bankruptcy lawyer.
All you have to do is fill out the below free form or call us at 888-632-0587 and we'll connect you with a bankruptcy attorney in your area. Make the first step right now and contact us.
What Are Property Exemptions and How Do They Protect You?
Property exemptions refer to your assets that can not be liquidated by the bankruptcy court during your Chapter 7 case. In other words, exemptions can help protect you from losing certain items during your Chapter 7 bankruptcy case.
If an item is exempt, this means that it cannot be liquidated in Chapter 7 bankruptcy.
If an item is not exempt from Chapter 7 liquidation, it could very well be sold off by the bankruptcy trustee to pay back your creditors during your bankruptcy case.
Each state has its own bankruptcy exemptions, with varying specifics. To learn more about your state’s bankruptcy exemptions, be sure to get in touch with a Chapter 7 bankruptcy lawyer near you.
Which of Your Assets May Be Exempt from Chapter 7 Liquidation?
While each state has its own exemptions, certain items are generally exempt from Chapter 7 liquidation throughout the 50 states, often including your:
- primary residence;
- tools;
- work equipment;
- vehicle;
- certain items of property; and
- numerous other categories of property.
For more on the specific amounts for these types of Chapter 7 exemptions in your state, talk with a local Chapter 7 bankruptcy lawyer as soon as possible.
Will You Lose Any Items during Chapter 7 Liquidation?
The answer to this question depends on your situation.
Generally speaking, most people who file Chapter 7 bankruptcy do not have any non-exempt assets, meaning that they keep most, if not all, of their property.
Furthermore, bankruptcy trustees will not liquidate in most Chapter 7 cases unless they are able to collect a significant amount of money to pay to creditors.
Examine Chapter 7 Exemptions with Your Bankruptcy Lawyer
At Bankruptcy.Me, we can put you in touch with a Chapter 7 bankruptcy lawyer who can explain bankruptcy exemptions in more detail as they may apply to your situation and answer this important question of whether or not you may lose any of your property after filing.
Take advantage of one of two options to connect with a local bankruptcy attorney – fill out our free bankruptcy case review form or call 888-632-0587. Whatever you choose to do, we’ll connect you with a nearby bankruptcy lawyer who can answer your most pressing bankruptcy FAQs and examine your options.
The above synopsis of bankruptcy laws is by no means all inclusive and is not intended to provide legal advice. These laws may have changed since our last update and there may additional laws that apply in your situation. For the latest information on these bankruptcy laws, please contact a local bankruptcy lawyer in your area.