Everything you Need to Know About Keeping Your Assets in Chapter 7 Bankruptcy
Everything you Need to Know About Keeping Your Assets in Chapter 7 Bankruptcy
Bankruptcy is a difficult decision to make. However, it can provide you with much-needed relief from overwhelming debt. The idea of losing your assets, particularly your home and car, can be daunting. That is why understanding the exemptions and the process of Chapter 7 bankruptcy can help you keep your property and move forward with a fresh start. In this blog post, we'll discuss how Chapter 7 bankruptcy works and what assets you can keep.
Chapter 7 bankruptcy, also known as a "liquidation bankruptcy," is a legal process where a trustee sells non-exempt assets to repay creditors. Before the trustee begins to sell your non-exempt assets, however, you can claim certain exemptions that protect certain assets. These exemptions vary depending on the state. Here are some exemptions available in North Carolina to protect your property:
Homestead exemption: You can protect up to $35,000 of equity in your home as a homestead exemption.
Vehicle exemption: You can protect up to $3,500 of equity in your vehicle as a vehicle exemption.
Pension and retirement accounts: These accounts are exempt within certain limitations.
Personal property: You can protect a certain amount of personal property, including clothing, household goods, and tools of your trade.
Wildcard exemption: In North Carolina, you can use an exemption called a wildcard exemption to protect any property up to a value of $5,000.
It is essential to recognize that not all assets are exempt. Non-exempt property may include vacation homes, boats, investments, and stocks. You must list all your property, including non-exempt assets, on your bankruptcy petition. If you have non-exempt property, the trustee will sell them, and the proceeds will be used to pay your creditors.
Filing for Chapter 7 bankruptcy can be overwhelming, but it's a way to get rid of your debts and move forward with a fresh start. At The Law Office Of Calvin Craig, we have many years of experience and have helped many North Carolina residents navigate the bankruptcy process. Our attorneys can help you protect your exempt property, including your home and car, and ensure you get the most out of a Chapter 7 bankruptcy. Don't hesitate to contact us today to learn how we can help you!
