When it comes to Chapter 7 proceedings, it can be frightening to imagine all the personal property you’ll need to liquidate or sell. That being said, you may be surprised by just how much you can keep. Most bankruptcy filers are pleased when they find out that they can maintain possession of their furniture, their household appliances, their car and other items they hold dear.
Here are the four primary categories of property that will benefit from exemptions during Chapter 7 liquidation:
Homestead exemptions allow homeowners to keep at least some value of their homes. Although this exemption is subject to certain value limitations, you might not have to give up all the equity you have in your home.
You are entitled to keep your car up to a certain value. If you own a $500,000 Rolls Royce, you’re not going to be able to keep that vehicle, but if you have a modest vehicle that isn’t a “luxury” car, you’ll probably get to keep it.
Your personal property
This includes a lot of different categories of items that you own, such as clothing, appliances, furniture, jewelry, retirement accounts, tools of your trade, musical instruments for professional musicians and a great deal more. Of course, like all of your exemptions, they will be subject to limitations.
In this miscellaneous category, bankruptcy filers might be able to make an argument for additional exemptions.
The ultimate goal of your bankruptcy attorney will be to get as much of your property exempt from liquidation as possible. If you’d like to get a sense for what you’ll need to sell — and what you might be able to keep in your Chapter 7 bankruptcy, our law office is available to speak with you about your case.