For many Miami residents who are considering filing for bankruptcy, there is some concern over which items they can keep if they choose to file. While they understand that by filing for bankruptcy generally means they should be willing to live somewhat modestly, some people have items that they would prefer not to give up, including their television.
But exactly what a person is allowed to keep can be determined by a number of factors, such as where they live, whether the items are already paid for, as well as the value of the item. Liquidation is a real part of filing for Chapter 7 bankruptcy, but a person filing is not left with nothing. They can keep a modest vehicle, and items that add up to a fixed amount. In most cases, a regular TV is safe, but a big screen TV worth thousands may very well be liquidated.
While the “clean slate” of bankruptcy can be appealing to many people, despite the ding in one’s credit rating, it is important to take the decision very seriously before heading into the process. Just because one meets with a bankruptcy attorney doesn’t mean they have to file. For some people, other options such as debt settlements and consolidation may be an option.
Whatever you decide, the most important thing is to make sure you are making an informed decision, and discussing any concerns you may have with your attorney before you actually file, and backing out of a Chapter 7 bankruptcy is not possible in the middle of the process.
Source: Fox Business, “Will Bankruptcy Creditors Take Away my TV?” Justin Harelik, Dec. 4, 2012