Chapter 7 bankruptcy provides options to protect some of the property of the party filing for bankruptcy. This can help Chapter 7 bankruptcy filers rest a little easier that they will not have to start over after the bankruptcy process is complete but will be able to enjoy a fresh financial start.
Chapter 7 bankruptcy is a liquidation bankruptcy option for those who qualify. It can help the filing party enjoy relief from overwhelming debt but also protect some of their property. During a Chapter 7 bankruptcy, the filing party’s assets are liquidated to repay creditors which can provide the filing party with a debt-free future. Not all of their property, however, is subject to the liquidation process which is why it is essential for filing parties to be familiar with Chapter 7 bankruptcy exemptions.
Chapter 7 bankruptcy exemptions include specific exemptions for specific property but can also include wild card exemptions for property that is not covered by a specific property exemption category or property that exceeds a property category limit. Property exemption categories can be subject to certain limits. Specific property exemptions include protections for a certain amount of equity in the filing party’s home and vehicle. In addition, exemptions for personal property including clothing, jewelry, household furnishings and appliances may be available to the filing party.
There are different types of personal bankruptcy protection options and resources for filing parties to consider that provide layers of protection for filers. It is important for those considering bankruptcy relief to understand what these protections are and how they can help them.