You are afraid to answer the phone and open the mail. You are humiliated when, yet again, the salesperson tells you that your credit card has been declined. It is time to put an end to the stress of embarrassment and harassment; contact a knowledgeable bankruptcy attorney.
Understanding Your Rights Under Chapter 7 Bankruptcy
Chapter 7 bankruptcy liquidation is a process that clients can use to permanently eliminate unsecured debt by liquidating and selling off assets. For individuals facing serious financial challenges, whether due to illness, lack of employment or the economic downturn, Chapter 7 can be a strong solution for resetting your situation and taking back control of your financial future.
The qualifications and eligibility requirements for filing under Chapter 7 can be strict, and it is important to work with a lawyer that can guide you toward the right strategies to match your need. At the law offices of Pesner Kawamoto Conway, PLC, our attorneys work closely with clients. We provide experienced and informed strategies personalized around your unique situation.
We help you understand the bankruptcy and Chapter 7 process.
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If you are considering your rights and options under Chapter 7 bankruptcy protection, make sure you work with a lawyer that will build a personalized plan around your particular situation.
Contact the attorneys of Pesner Kawamoto Conway, PLC, to schedule a confidential consultation to discuss whether Chapter 7 is the right solution for you.
Exempt vs. Non-exempt Property Under Chapter 7
In a Chapter 7 liquidation case, the debtor must relinquish certain property to the bankruptcy trustee so that he or she can sell the property and use the proceeds to pay off debts. Property of the bankruptcy estate is broadly defined under Section 541 of the Bankruptcy Code. The estate is technically the legal owner of all of the debtor's property and consists of all legal and equitable interests that the debtor has in property at the initiation of the bankruptcy case. Income that the debtor earns after the date of the petition is not included in the estate. Debtors, whether they are businesses or individuals, are often justifiably concerned about what property they will be allowed to keep and what they must give up. A bankruptcy lawyer at Pesner Kawamoto Conway, PLC in McLean, Virginia can answer these and other questions, allay fears and keep the process moving forward as painlessly as possible.
A debtor must file a schedule of exempt property with the court. Exempt property is property that the debtor can protect from liquidation. The Bankruptcy Code allows each state to adopt its own exemption laws, which the debtor can select instead of the federal exemptions. It is important to consult with an attorney who can explain the exemptions available under your state's laws and how they compare to the available federal exemptions.
Non-exempt Property
Items that the debtor usually must forfeit include:
- Expensive musical instruments, unless the debtor is a professional musician
- Collections of stamps, coins and other valuable items
- Family heirlooms
- Cash, bank accounts, stocks, bonds and other investments
- A second car or truck
- A second home or vacation home
Exempt Property
Certain types of property are exempt, meaning that the debtor can keep that property. Exempt property includes:
- Motor vehicles, up to a certain value
- Reasonably necessary clothing
- Reasonably necessary household goods and furnishings
- Household appliances
- Jewelry, up to a certain value
- Pensions
- A portion of the equity in the debtor's home
- Tools of the debtor's trade or profession, up to a certain value
- A portion of unpaid but earned wages
- Public benefits, including public assistance (welfare), social security and unemployment compensation, accumulated in a bank account
- Damages awarded for personal injury
Conclusion
If you have questions about what property you will be allowed to retain if you file for bankruptcy under Chapter 7 of the Bankruptcy Code, it is prudent to seek the counsel of an experienced and knowledgeable bankruptcy attorney at Pesner Kawamoto Conway, PLC in McLean, Virginia who can respond promptly and accurately and put your mind at ease.
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