California Bankruptcy Attorneys - How to Retain your Assets

One of the major concerns for individuals filing for bankruptcy is how to retain their important assets while still taking advantage of bankruptcy protections. For individuals who qualify for Chapter 7 bankruptcy, there is a built-in means of protection for assets: exemptions. In California bankruptcy cases, you can choose between two different sets of exemptions, which allow you to keep property and valuables that are within a certain dollar amount. This can help you maintain control of assets such as your home, your car, or other items of value. The list of exemptions covers many common valuables, including:

·         Your Home

·         Your Car

·         Personal Property – jewelry, clothing, furniture, etc.

·         Pensions

·         Public Benefits

·         Tools of the Trade – items you need to run your business or perform work

·         Business and Professional Licenses

·         Insurance Benefits

While the exemption amount may not cover the full value of these items, depending upon your situation, the exemption amount must be paid to you if the bankruptcy trustee does decide to take any asset which has a value in excess of the exemption. This often means that if there is only a slight overage to the exemption amount, the bankruptcy trustee will not bother to sell the asset, as the costs of storage and/or sale would leave very little for creditors after you have been paid your exemption.

Additionally, there is a “wildcard” exemption, which you may apply to any non-exempt item. That item will be treated as though it is exempt for the purposes of the bankruptcy filing. Due to the new laws imposed on bankruptcy filers, most individuals who file for Chapter 7 bankruptcy will have no problems keeping most, if not all of their assets. In many instances, Chapter 7 bankruptcy is essentially a “no-asset” case, meaning that there are no assets with which to pay creditors. In this instance, any of your belongings will be yours to keep, regardless of the bankruptcy proceedings.

For individuals who file for Chapter 13 bankruptcy, it is generally easier to maintain control of assets. Creditors who are paid back must receive as much as they would in a Chapter 7 bankruptcy filing as part of the repayment plan – no more, no less. This means that you do not have to pay back creditors who would not receive any compensation in a Chapter 7 bankruptcy filing. Additionally, as long as you maintain your repayment plan, your assets will not be sold, and you will retain ownership of your belongings. After the repayment period is completed, you will not be liable for any debts which have been discharged under the terms of the California bankruptcy.

Filing for bankruptcy in California does not mean that you have to give up everything you own. Speak with a reputable, experienced California Bankruptcy Attorney today and get the information you need to make a decision what type of bankruptcy is best for your particular situation. We have expert California Bankruptcy Attorneys available to speak with you at any time – just contact us and schedule your free, no-obligation online California Bankruptcy case evaluation. We will make certain you fully understand California’s exemption laws and how they can allow you to preserve your assets while still taking advantage of bankruptcy’s protection.