The most popular bankruptcy in the U.S. is Chapter 7. It’s basically a debt cancellation. You can file for Chapter 7 bankruptcy if you don’t have enough income to pay creditors. This will give you a fresh start and financial freedom.
Do I Have the Right to Keep My Belongings if I File Chapter 7 Bankruptcy?
Chapter 7 is a complicated topic that can cause a lot of anxiety for those considering it. You will need to sell assets in order to pay your creditors. You can retain some assets via bankruptcy exemptions.
Common Chapter 7 Exemptions
The following exemptions can be obtained through the state and federal governments (this is not an exhaustive list):
Your Home and Property
The Homestead Protection protects your house for up to $136.925 of its equity. You can double your exemption amount if you and your spouse file a joint bankruptcy.
Protect your vehicle for as little as $3,775 per motor vehicle
Personal Cash and Household Items
You can protect your cash up to $475 either in hand or in the bank. Protection for household items up to $12250 with a per-item price of $575 and protection up to $1700 in jewelry.
Your Retirement Funds
Protect your 401(k), 457, or IRA retirement plans.
Wild Card Exemption
Ohio allows $1,250 protection for all property other than real estate. This exemption can be used for the protection of something that is not covered by any other exemptions or added to another.
This post was written by Trey Wright, one of the best Jacksonville bankruptcy lawyer! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, specializing in bankruptcy law, estate planning, and business litigation.
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