Is Chapter 7 Right for You? Part One
How You Can Protect Your Personal Items When Filing Chapter 7 Bankruptcy
Is it Possible to File Chapter 7 and Keep your Personal Property?
Being able to keep your possessions after filing Chapter 7 bankruptcy is a thing! However, it is important that you meet with an experienced bankruptcy attorney to make sure that your property can be protected and what assets are exempt before moving forward with filing Chapter 7.
What is Personal Property?
Your personal property includes anything you own that is not real estate, such as your car, tax refund, retirement account, cash and money in the bank, and other items in your possession.
How Do You Determine Exactly What Can Be Protected?
There are exemptions available to protect items that you own up to a certain amount. Exemptions are laws that protect your property. There are various state and federal laws to protect certain things that you own.
At a free bankruptcy consultation, Financial Freedom Legal gathers information about your belongings, determines their value, and identifies laws that can be used to protect your stuff. From there you receive guidance about whether or not all of your things could be protected if you file Chapter 7.
Will I Lose my Tax Refund?
There are numerous exemptions available that can be used to protect your tax refund. Including, an exemption that protects the total amount of any tax refund that you’re entitled to based on an earned income tax credit or a child tax credit. In many instances, you can file bankruptcy, eliminate your debts, and keep the full amount of your tax refund.
Is My Retirement Account Protected?
YES. There are exemptions available that protect 100% of your retirement account. This means that you do not need to take loans or early withdrawals from your retirement account to repay debts. It is possible to file Chapter 7, eliminate debts, and keep your retirement funds for your retirement.
Can I Keep My Car if I File Chapter 7?
It is possible to file Chapter 7 and keep your vehicle. There are exemptions available to protect your vehicle. This is particularly important if your vehicle is owned free and clear, and there are no liens or loans attached to your vehicle. There is not an unlimited exemption for a vehicle, which means that a large amount of equity in a vehicle can potentially be an issue for filing under Chapter 7.
If your vehicle has a loan attached to it, there is not a large amount of equity, and you are up to date on your vehicle loan payments, Chapter 7 is unlikely to put your vehicle in danger.
Should I File Chapter 7 Alone?
Absolutely not! It is definitely possible to file Chapter 7 and keep all of your belongings. However, your ability to keep your things is dependent on a variety of factors, including the type of property, the value of the property, and the laws that are available to protect the property.
You don’t have to navigate this alone. At Financial Freedom Legal, we are happy to meet with you for a free consultation via telephone, virtually, or in-person. Let us help you determine if Chapter 7 is right for you!
