How can I protect my assets in bankruptcy?
I am often asked, “How can you protect your assets when you file bankruptcy?” This is a very important question for anyone considering bankruptcy. Although bankruptcy can be a great way to get rid of debt, many people are concerned that their assets and possessions will be lost. The good news is bankruptcy offers you extensive safeguards to protect your most valuable possessions, both during and after bankruptcy.
The main way assets are protected during bankruptcy is by “exemptions”. Exemptions are basically categories of property which are protected in bankruptcy up to a certain amount. Assets that fall within these exempt categories and have a value that does not exceed the protected limit for that category are considered exempt, while assets that do not fall within one of these exempt categories or that have a value that exceeds the limit that can be protected are considered non-exempt.
Exemptions in Minnesota are broad, and they can allow you to protect many of the most significant things you own, including your home, your vehicle, your pets, your retirement, social security, and government support, and, for most people, the majority of your personal possessions. Exemptions are governed by rules set forth by the federal and state legislatures. Your bankruptcy attorney will help you determine which exemptions work best for you.
The great news is that your attorney can tailor your case to your specific assets and protect them to the maximum extent possible during bankruptcy. In some cases, your entire estate could be exempt.
While bankruptcy exemptions are wide, certain items may not be exempt. This raises the question: “How can I protect my non-exempt property?” The answer depends on the type bankruptcy you file. In a Chapter 7 bankruptcies, non-exempt property can be protected by paying the current cash value of these assets into the bankruptcy. This is often done for a payment schedule that your attorney negotiates on your behalf. In a Chapter 13 bankruptcies, both your exempt and nonexempt assets will be protected. The total value of your non exempt assets will determine the amount of payments you make into your Chapter 13 bankruptcy plan. Call Now For A Free Strategy Meeting With A MN Bankruptcy Attorney
For the majority of people, most of their assets will be protected by the bankruptcy process. This includes your home, vehicle, pets, and retirement savings. Please contact us to learn more about how these assets can best be protected. We’re happy to answer any questions you may have about how bankruptcy could benefit you and your family. When the time is right, or when you are ready, please don’t hesitate to contact Minnesota’s most kind and helpful bankruptcy law firm by going now to
www.lifebacklaw.com
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