When you file for Chapter 7 bankruptcy in North Carolina, you might have to sell some of your assets to pay off your debts. Typically, certain assets like homes and vehicles are considered exempt, meaning that you can keep these assets while you go through the bankruptcy process. However, there’s always the risk that you’ll have to forfeit your non-exempt assets.
What are non-exempt assets?
In asset forfeiture terms, exempt assets are properties that you can’t reasonably be expected to live without. This might include your house or primary vehicle. On the other hand, non-exempt assets are anything that you don’t necessarily need to live a normal life.
Non-exempt assets might include second vehicles, additional properties and stock market investments. They might also include personal belongings like jewelry, artwork, collectibles, musical instruments, fancy clothes and other luxury goods. If you don’t have any non-exempt assets, you’ll have a “no asset” case that involves discharging some of your debts without paying them off.
If you’re not sure what you might lose in a bankruptcy filing, you may want to talk to a bankruptcy attorney. They might be able to help you prepare for the asset forfeiture part of the process.
Is bankruptcy the best option for you?
Filing for Chapter 7 bankruptcy can cause you to lose several assets as you pay off your debts. Your credit score will also take a hit and might take several years to rebuild. However, bankruptcy could also help you get out from underneath a mountain of debt.
If you’re not sure if you’re ready to file yet, consider talking to an attorney about your financial situation. They might be able to recommend other options before filing for bankruptcy. If not, an attorney could help you through the process and make sure you’re prepared to file.
