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How do Bankruptcy Exemptions protect my property in bankruptcy?

 

Bankruptcy Exemptions in Chapter 7 Bankruptcy

When you file for Chapter 7 Bankruptcy relief,  your bankruptcy attorney will use bankruptcy exemptions to protect your assets.  In most states, as in Missouri, these bankruptcy exemptions are set by state law.

Bankruptcy exemptions are necessary because your assets can be used to pay creditors.  The Chapter 7 bankruptcy trustee will want to know what assets you own.   Your bankruptcy attorney will help you determine the value of these assets.  If you own a house worth $90,000, but you owe $80,000 against it, it is worth $10,000.  Your bankruptcy attorney in Missouri will apply a $15,000 “homestead” exemption to protect your home.

The same is true of other property.  You must determine what the current value is.  Since property loses value quickly, it is usually worth far less than you paid.  Your clothing will not be worth much, nor will your furniture.  Your attorney will apply exemptions to this type of property as well.

 

Bankruptcy Exemptions in Chapter 13 Bankruptcy

Although the trustee in a Chapter 13 does not liquidate your property, you still must use bankruptcy exemptions.  If you own valuable property that is not exempt, you will have to repay a larger amount in a Chapter 13.  As such, the value of your property as an impact on how much you might repay in a Chapter 13.  People who have equity in their homes may have to repay a certain amount to creditors.

 

Most things, but not everything, can be protected by bankruptcy exemptions.  Since you want a fresh start, you should talk to a qualified bankruptcy attorney.  A bankruptcy attorney can help you apply your bankruptcy exemptions and assure that you keep all or most of your property.

Sean C. Paul, St. Louis attorney, can help you apply your bankruptcy exemptions

Sean C. Paul, St. Louis attorney, can help you apply your bankruptcy exemptions

Sean C. Paul is licensed to practice law in the State of Missouri. His practice is located in south St. Louis County. He can help you with your Chapter 7 or Chapter 13 Bankruptcy case.

Sean C. Paul will give you the individual attention you deserve. He will meet with you one-on-one to determine how he can help you. If you are considering filing bankruptcy in Missouri, please call today.

Sean C. Paul, Attorney at Law Google+ Profile.

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