Making the choice to file for bankruptcy is not easy. You may feel embarrassed and hopeless about your financial situation, but taking this step can help you achieve a better financial future. In the meantime, however, you may wonder what bankruptcy will mean for your personal property.
Some California consumers refrain from filing for Chapter 7 bankruptcy because they are unsure of what taking this step will mean for their personal property. Chapter 7 is liquidation bankruptcy, but that does not mean you will lose all of your property. There are certain exemptions available that can allow you to retain many of the assets that are most important to you. It may be helpful to learn more about how bankruptcy works and what it will mean for you.
Bankruptcy exemptions and your property
Bankruptcy law allows for certain exemptions for those who file for Chapter 7. This means that people will have the right to retain certain assets in order to allow them to live and work while they follow the terms of the bankruptcy plan. Some of the exemptions that may be available to you include the following:
- Vehicle exemptions – You may be able to keep your vehicle as long as it is worth less than a certain amount. Extra vehicles may not be exempt.
- Homestead exemptions – Filing for bankruptcy does not mean you will lose your home. Certain exemptions may protect your home and allow you to stay there.
- Personal property exemptions – Some exemptions may allow you to keep certain items like your jewelry, furniture and other assets you may want to protect.
If concerns about what will happen to your personal property are keeping you from taking the important step of filing for bankruptcy, it may be helpful to learn more about the exemptions that are available to you and how you can still pursue a stable financial future.
Discover your options
If you cannot manage your credit card payments or other types of payments, you may consider how bankruptcy can allow you to deal with certain types of debt once and for all. A complete evaluation of your case can help you understand how this could be a smart choice for you and your future. It can also be helpful to learn more about what to expect from the process, including how exemptions work and what will happen to your property after filing for bankruptcy.