Whether you file for bankruptcy under Chapter 7 or Chapter 13, part of the process will typically involve using your assets to pay down what you owe. This is concerning for many people. When you are already dealing with financial strain, the last thing you want to do is give up your car, your home or any other assets you rely upon on a day-to-day basis. Fortunately, it is possible to protect many of your assets with the help of a New Jersey bankruptcy attorney.
There are lots of misconceptions about the bankruptcy process. One of these misconceptions is that you have to pay down your debts as much as possible. This is not the case. In fact, you can use the bankruptcy process to protect many of your assets while keeping any associated debts (i.e., your mortgage or car loan), and you can come out of the process better off financially than you were before.
Which assets can you protect when you file for bankruptcy? An experienced New Jersey bankruptcy lawyer may be able to help you protect assets including:
If you own your home and are dealing with financial strain, the risk of losing your home to foreclosure can be one of the most stressful aspects of your situation. In this situation, filing for bankruptcy can be one of the best ways to avoid foreclosure—and taking action before you receive a foreclosure notice can help streamline the process as much as possible.
When you file for bankruptcy, you are also entitled to keep your furniture and other household items such as appliances and even your TV (though you may not be able to keep multiple TVs). You are entitled to a reasonable standard of living, and this means that you are entitled to keep the things that make your house a home.
The U.S. Bankruptcy Code also allows Chapter 7 and Chapter 13 filers to keep their clothes, jewelry, personal electronics and other personal items. While there are exceptions in some cases, again, filing for bankruptcy does not mean giving up everything you own.
Retirement accounts, life insurance policies, and government benefits such as Social Security and unemployment are also protected during the bankruptcy process. By working with an experienced New Jersey bankruptcy attorney, you can make sure you preserve as many of your assets as possible.
Would you like to know more about the assets you are entitled to keep when you file for bankruptcy under Chapter 7 or Chapter 13? If so, we invite you to get in touch. To request a free consultation with New Jersey bankruptcy attorney Georgette Miller, please call 866-964-6529 or inquire online today.