When you file Chapter 7 bankruptcy, you are making an effort to relieve yourself of the burden of the financial obligations you are unable to meet. Depending on the situation, you are also acknowledging that your creditors deserve some form of compensation, even if it does not cover everything that you owe them.
In order to cover these costs, some of your assets may be sold off by the bankruptcy trustee. However, not everything you own can be sold off. What cannot be sold off are items that are exempt from this process. Click here for more information on Chapter 7 (http://www.zerodownbankruptcy.com/Chapter-7/).
Choosing Exemption Options
Each state has the right to its own list of exemptions. In most states, there is a state exemption list. Some states also allow you to choose between the state exemption list and the federal exemption list. The primary differences are the limits of worth and the details of the unsecured objects to be considered. In order to protect your property and assets, it’s crucial that your attorney examine Florida exemptions and laws. For more information on bankruptcy exemptions in Florida click here (http://www.zerodownbankruptcy.com/).
Calculating Your Basic Needs
The courts have no wish to see you unable to meet your basic needs. This is one of the reasons that homes and vehicles are sometimes exempt. However, this applies only to what you need rather than what you want. So, if you have three cars and five homes, you might expect to end up with one car and one home. However, because basic needs vary, this can become complicated.
You could also be entitled to funds owed to you by court order. For example, if you have won a personal injury suit, those funds are still yours to keep because you won them on the basis of having experienced some sort of actual injury that you needed to take care of. When it comes to exemptions and making sure you keep the items you need, it’s important to have a bankruptcy attorney familiar with Florida bankruptcies.
Determining Exemption and Value
Exemption in bankruptcy is not just about the objects themselves, but their value as well. Homes, for instance, are capped at having a value of a little over $160,000. While the courts allow you to keep your home if it is at or below that value, you may need to sell a home valued at more than that. The funds will be applied toward your debts while the exemption value will be given to you so that you can buy a new home, as long as your previous house sold for more than the exemption value. If it did not, in most cases, you would receive up to the exemption value.
Please share this post online with friends and family members who are considering bankruptcy, and who are concerned about bankruptcy exemptions and protecting property.
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