PLEASE NOTE: To protect your safety in response to the threats of COVID-19, we are offering our clients the ability to meet with us in person, via telephone or through video conferencing. Please call our office to discuss options.

Has Debt Taken
Over Your Life?

What are Chapter 7 bankruptcy exemptions?

Personal bankruptcy protections can help consumers with overwhelming debt enjoy debt relief and get on a fresh financial footing. Chapter 7 bankruptcy is one type of personal bankruptcy protection that is referred to as a liquidation bankruptcy process during which non-exempt assets are liquidated to repay creditors. The process, however, is not designed to make the filing party start from scratch so it is important for them to be familiar with Chapter 7 bankruptcy exemptions.

Some types of property are protected from the Chapter 7 bankruptcy process. In addition to specific types of property that are exempted from the process, wild card exemptions may also be available for property that does not fall under a specific property exemption category or exceeds the limit for that category.

One of the most important property exemptions is the homestead exemption that may protect a portion of the equity the filing party has in their home. Additional Chapter 7 property exemptions include an exemption for a certain amount of value in the filing party’s car. Chapter 7 property exemptions may also be available to protect certain personal properly. Examples of personal property that may be exempted can include clothing, jewelry home furnishings and appliances.

Chapter 7 bankruptcy is one type of personal bankruptcy for those considering filing for bankruptcy protection to consider. Those considering personal bankruptcy protection should be familiar with how to qualify for Chapter 7 bankruptcy and how the process can help the filing party enjoy a fresh financial start without starting over.

FindLaw Network