Bankruptcy filers often fear losing everything they own when going through a Chapter 7 or Chapter 13 bankruptcy case. You may think that filing for bankruptcy means you have to give up your home, your car, and other important assets. This is simply not true. Laws are in place to help protect you, while also providing creditors with a portion of debt repayment.
All nonexempt assets may be used to repay your creditors in a Chapter7 bankruptcy. These include:
- Vehicles
- Land
- Houses
- Investment Properties
- Items of value, like jewelry artwork.
However, many Chapter 7 cases are no-asset cases, meaning the debtor gives up no possessions. This happens for two reasons. First, you can allot for basic assets, called exemptions that are necessary for day-to-day living. For example, the homestead exemption that protects your primary residence. Your vehicle that you need to get to and from work. Personal items and household goods, tools of the trade (i.e. – items you own and use to make a living) are all protected.
The U.S. Bankruptcy Code and Florida bankruptcy laws protect a great deal of a consumer’s property, if used appropriately. The State of Florida has some of the most generous bankruptcy exemptions in the country, but these exemptions only apply to individuals who meet certain residency requirements. For these exemptions to apply, the consumer must have lived in the state for at least two years before filing. Otherwise, federal exemptions apply.
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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of 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 McMaken 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 McMaken website at www.miamibankruptcy.com.