Exempt vs. Not Exempt

One of the most confusing aspects about filing for bankruptcy is the issue of what property is exempt and what property is not exempt. When property is determined to be exempt from bankruptcy, it cannot be taken away from you by a bankruptcy trustee. Many people erroneously believe that filing for bankruptcy means that they will automatically be stripped of all possessions in order to pay back debts. That is simply not true.

Exempted Possessions during Your Chapter 7 Bankruptcy Proceedings

The first major exemption is called the homestead exemption, and it applies to the place where you live. Whether you rent or own, the place that you live will not be taken away from you during your chapter 7 bankruptcy. Although certain limits may be placed on the value of your residence, the trustee will not leave you to be homeless.

The other major exemption is the vehicular transportation exemption. As is true with the homestead exemption, the bankruptcy trustee will allow you to keep your mode of transportation, so long as it does not exceed a predetermined value. To figure out exactly what that value is in your area, you will need to consult with a chapter 7 bankruptcy attorney in San Antonio. However, you can determine the value of your vehicle by subtracting the amount you still owe from the market value.

Beyond the vehicle and homestead exemptions, other possessions are also exempt from bankruptcy proceedings. A chapter 7 bankruptcy attorney in San Antonio can tell you exactly what is exempt, but for the most part, you can count on keeping your household appliances, most of your clothing (up to a certain value), jewelry (again, up to a certain value) and any family heirlooms or keepsakes.

A chapter 7 bankruptcy attorney in San Antonio will be able to walk you through property exemptions on a case by case basis. Still, it is imperative that you remember that the point of filing for chapter 7 bankruptcy is to get the debt relief you so desperately deserve. Do not allow your fears for your material possessions prevent you from taking the steps you need to get your financial freedom back. Contact a San Antonio Bankruptcy Expert today!

By | 2017-11-07T10:27:15+00:00 September 16th, 2013|Chapter 7 Bankruptcy|Comments Off on Exempt vs. Not Exempt

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