Which Assets Can I Keep During Bankruptcy?

 Posted on September 04, 2024 in Bankruptcy

The fear of losing all their belongings keeps a lot of families from getting the debt relief they need through Chapter 7 bankruptcy. Although Chapter 7 bankruptcy does involve liquidation, not all of your assets will be taken and sold during this process. Quite a few of the things you own are exempt from liquidation, meaning that you can keep them even if you choose to file Chapter 7 bankruptcy. The goal of filing bankruptcy is to help your family get out from under crushing debt and get back on your feet. That would be very hard to do if you lost, for example, the car you need to get to work. A Charlotte, NC Chapter 7 bankruptcy attorney can tell you more about which assets are exempt from liquidation. 

Exempt Assets in Chapter 7 Bankruptcy

Assets that are exempt from liquidation when you file Chapter 7 bankruptcy include: 

• Your homestead - Up to $35,000 of equity in your home is protected. This amount doubles if you and your spouse are both on the title, and is also higher for senior citizens. 

• $5,000 in personal property - Your personal property includes things like your clothing, furniture, kitchen goods, and recreational items like camping gear. You can keep up to $5,000 worth of these item, plus an additional $1,000 for each dependent. 

• Most tax-exempt retirement benefits - Things like your retirement accounts and pensions are usually protected. 

• A personal vehicle - You can keep a vehicle worth less than $3,500. 

• Money awarded in a family law case - Child support and alimony payments you rely on are generally exempt. 

• Public benefits - Unemployment or workers’ compensation benefits, Social Security payments, veterans’ benefits, and crime victims’ compensation are protected. 

• College savings accounts - If you have opened a qualified college savings account for your child, up to $25,000 of that money is protected. 

• Tools of your trade - You can keep up to $2,000 worth of property you need for work, such as tools, a computer, or books. 

• Health items - Any medical gear you need is exempt. This includes prescribed equipment like a wheelchair, hearing aids, accessibility modifications used in your home or vehicle, and other mobility devices. 

Contact a Mecklenburg County, NC Chapter 7 Bankruptcy Lawyer 

Blossom Law PLLC is committed to helping families preserve as many of their assets as possible during the bankruptcy process. Experienced Charlotte, NC bankruptcy attorney Rashad Blossom will do all he can to make the liquidation process as painles as it can be. Contact us at 704-256-7766 for a complimentary consultation.