Bankruptcy gives people a chance for a fresh start and to have their debts forgiven. Through Chapter 7 bankruptcy, filers are essentially saying they do not have the money to make payments on their debt and want to have their debt eliminated. As part of the process, consumers may have their assets seized to pay off a portion of their debt.
However, not all assets can be seized. These exemptions include: retirement accounts and pensions, your home and your car, based on how much they are worth. So, it is possible to file bankruptcy and keep your home and your car. Exemption amounts vary from state to state. But generally, any assets with equity lower than the exemption amount cannot be seized.
Chapter 13 bankruptcy is a process where consumers can work out a payment plan over three to five years to pay off their debt. Consumers who file Chapter 13 will not lose their property as long as they keep making payments on time. And consumers who start off filing Chapter 7 bankruptcy but then realize that their property may be seized may be able to switch to Chapter 13 bankruptcy, which would allow them to keep their assets and get current on payments.
Consumers who are thinking about filing for bankruptcy should speak to an attorney and research the bankruptcy exemptions in their state to know exactly how much of their property is at stake. It is important to know that certain debts, such as student loans, tax debts and child support obligations, cannot typically be discharged in bankruptcy.
If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.