Chapter 7 bankruptcy helps those struggling with overwhelming debt enjoy debt relief and a fresh financial start going forward. It does not, however, mean that the filing party has to start from scratch to access the benefits of personal bankruptcy protection. Certain property and assets may be protected through the Chapter 7 bankruptcy process that the filing party should be familiar with.
Chapter 7 bankruptcy exemptions may provide important protections to filing parties including protections for:
- Home – homestead exemptions may protect a certain amount of equity in the filing party’s home.
- Car – exemptions for a certain amount of value in the filing party’s car may protect the filing party’s car.
- Personal Property – personal property exemptions may provide protections for clothing, jewelry, appliances and household items such as home furnishings.
- Wild Card – wild card exemptions may provide protection for categories of property that are not included in the enumerated exemptions or have reached the limit for the exemption category type.
Because exemptions can vary by state, it is important for those considering Chapter 7 bankruptcy protection to be familiar with the protections in their state. In addition, exemptions may be subject to certain limits filing parties should also be aware of.
For those who qualify, Chapter 7 bankruptcy provides a variety of important protections, including an automatic stay that provides protections for creditors during the bankruptcy process, and bankruptcy exemptions to protect certain property from the process which may provide additional relief to the filing party. Because of the protections personal bankruptcy provides, those considering bankruptcy should understand the process and how it can help them enjoy debt relief.
