People who are having difficulties paying their bills and addressing their debt often file for bankruptcy. It is not always easy for people to decide to file bankruptcy. Yes, it will get them out of debt and eventually keep them from having to pay thousands of dollars to creditors, but people are often concerned about what they may have to give up or how filing will damage their credit score. Thanks to bankruptcy laws, people don’t have to worry about losing all of their property, but because some things are not exempt, it doesn’t mean they get to keep everything they own.
The following items are not exempt from Chapter 7 bankruptcy:
- Bank accounts.
- Family heirlooms.
- Second home.
- Second vehicle.
When someone files bankruptcy, the goal is for them to get out of debt, and once again, become financially stable. When certain items are exempt from bankruptcy, this is often because people need these items to survive, so property like your car and home are likely to be exempt. Many of the items that are not exempt aren’t always seen as necessary, which is why they aren’t exempt. However, this doesn’t mean that these items are always going to be considered non-exempt.
Although many people may struggle with filing bankruptcy because there are some cons that they cannot seem to get over, it can sometimes be the best thing for them. No one deserves to be stressed over crippling debt for the rest of their life, and if filing bankruptcy can help them avoid it, it is worth considering. Anyone with questions about property exemptions and bankruptcy can contact an attorney for assistance and answers to their questions.