Usually you use the property exemptions available for the residents of your state. But not if you haven’t lived there long enough.
Usually everything you own is exempt (protected). But what happens if you own an asset that is not exempt? What does the trustee do? Chapter 7 is the “liquidation” form of bankruptcy. But in our last blog post we introduced the bankruptcy trustee as an only sometimes liquidator. That’s because in most Chapter 7 cases nothing gets liquidated. Nothing … Read More
If you have an “asset” Chapter 7 case, some or all of your debts are partially paid, with most or all of the remaining amounts written off.
Most pensions and other retirement funds are “exempt”–completely protected when you file bankruptcy. But there’s an exemption cap for IRAs.
The federal exemptions are nudging up about 3%. But that only matters if you are allowed to use them, and are higher than your state ones.
Most of the time everything you own is exempt, meaning it’s protected in a Chapter 7 bankruptcy. If not, Chapter 13 can usually protect it.
Give both you, AND your assets, a fresh financial start.