Deciding to file for bankruptcy is not something many people take lightly. However, if you’ve explored all your options and decided this is in your best interest despite the impacts it can have on your credit, it’s necessary to understand the different facets of this process. Many are concerned about whether or not the courts will take their property. However, you can use bankruptcy exemptions to your benefit to help shield your belongings. If you’re unfamiliar with this concept or what assets you should protect, a Memphis, TN consumer bankruptcy lawyer can help you through these complex times. Contact us today to learn how we can assist you.
What Are Bankruptcy Exemptions?
If concerned about the bankruptcy court seizing your assets to pay creditors, it’s necessary to understand how bankruptcy exemptions can benefit you. Essentially, this allows you to shield assets up to a pre-determined value from creditors. As such, the bankruptcy court cannot liquidate these assets to repay creditors during Chapter 7 bankruptcy. Exemptions are offered to help ensure that those going through bankruptcy have funds to help rebuild their financial standing following their bankruptcy case.
There are both federal and state exemptions. However, the states have the sovereignty to choose how they want filers to proceed with their case. For example, New York allows filers to choose between state and federal exemptions. However, Tennessee does not allow filers to choose and only offers state exemptions.
For example, Tennesee offers a homestead exemption, which can protect your home up to $5,000. Though the state doesn’t have a motor vehicle exemption, it does have a wildcard exemption. As such, this allows you to protect any personal property up to $10,000 in value.
You should also understand that certain public benefits are exempt up to their full value. This includes things like Social Security, workers’ compensation, and alimony payments will not be used to repay creditors.
How Can an Experienced Attorney Help Me Through This Matter?
Unfortunately, filing for bankruptcy is often a complex process, filled with a considerable amount of paperwork that must be filed correctly and on time. As such, it can be hard to handle these complexities while maintaining your daily responsibilities.
When you’re ready to file for bankruptcy, ensuring you connect with an experienced bankruptcy attorney is crucial. Unfortunately, many underestimate how important this is and try to navigate bankruptcy on their own. Not only can it be overwhelming, but you can make errors that impact the outcome of your case. For example, you may find that failing to report certain debts will exclude them from your case, and leaving out assets can result in the dismissal of your case before it’s completed.
When considering bankruptcy, finding legal representation to guide you through this process is critical. At the Arnold Law Firm, we understand how complex these matters can be. That’s why our team is ready to assist you through this process. Contact us today to learn how we can help you.