One of the most common questions of Attorney Karine Karadjian before filing for bankruptcy is, “Will I lose all of my assets?” The answer is that it depends. You should talk to our chapter 7 lawyer in Van Nuys to give you a better idea of how you will handle the situation.
Chapter 7 Lawyer in Van Nuys to Protect Certain Assets
The most common form of bankruptcy is chapter 7. It is ideal if you have a gargantuan debt. This type of bankruptcy will eliminate your debt. The process involves collecting all your assets and properties. Sell them to pay off as many debts as possible. The liquidation process is what scares a lot of people. They think that they will lose everything that they own, like their cars and homes. The good thing is that the state has laws that offer exemptions to the liquidation process. In that way, you will not lose a lot during the process.
With those exemptions, your properties and assets are protected from being taken away by your creditors. But which ones are exempted? Talk to our chapter 7 lawyer today for a free consultation. For instance, some state laws allow homeowners to protect their assets, up to $75,000 while others allow protection of up to $150,000 in home equity. There are also exemptions to motor vehicles, crops, personal property, animals, retirement accounts, and many others.
When you file for chapter 13, though, you can keep all of your property. But if you choose chapter 7, you may lose your property. Then again, there are some exemptions to it. However, most of our clients here at Karine Karadjian were surprised that they could keep their property because of those exemptions.
Choosing Chapter 7
You can’t just choose chapter 7 because you want to. Your debt has to be reviewed first before knowing the right chapter to file for. After consulting our lawyer, you will know what type of bankruptcy form to use. If chapter 7 is the most appropriate, you will not need to repay your debt. Rather, you will give up your property that is not exempted under the state’s law. The non-exempt property will be taken by a bankruptcy trustee to distribute to your creditors. After dealing with your property and meeting all requirements, you will receive a discharge. But most chapter 7 filers don’t have any nonexempt property. Exemption laws protect the equity in your home, clothing, car, and home furnishings.
Contact a Chapter 7 Lawyer
Every person’s situation is different. The exemptions will also depend on what you own and the exemptions available to you. On the other hand, if chapter 13 is the more ideal option for you, then you get to keep all of your property. But you must propose a repayment plan so you can pay off all of your debt. Losing your assets and property can be difficult to comprehend. It’s just not easy to think about how you will end up having nothing from having everything. If you’re not sure what chapter to file for to protect your assets, make sure to contact our chapter 7 lawyer in Van Nuys at (949) 565-4707.