Will You Lose Your Property In A Chapter 7 Bankruptcy?
Filing for Chapter 7 bankruptcy often brings with it a whirlwind of concerns, chiefly among them is whether you will lose all your property. Thankfully, the answer is not as daunting as it may seem. While Chapter 7 bankruptcy is a liquidation form of bankruptcy, certain exemptions apply that protect your essential assets from being taken.
At Robert W. Raley - Bankruptcy Lawyer, our attorney understands the intricacies of these exemptions and is here to guide you through what you can expect when filing for Chapter 7 bankruptcy. With 45 years of experience and certified specializations in both consumer and business bankruptcy law, attorney Robert Raley is highly qualified. Just as important, he approaches each case with the individual care and compassion his clients deserve. At our law firm, he will strive to ensure that your path to financial recovery is as smooth and stress-free as possible.
What Is A Liquidation Bankruptcy?
Chapter 7 bankruptcy is often called a liquidation or a fresh start bankruptcy because it has traditionally involved liquidating certain nonexempt assets to pay off creditors. However, it is important to note that you will not have to sell off all your assets.
Exemptions play a crucial role in protecting your essential belongings so that you do not have to start from scratch. Essentially, any exempt property you have will not be sold in bankruptcy. Exemptions help you maintain a basic standard of living while you reset your financial state.
Why Are Some Possessions Exempt From Bankruptcy?
The purpose of bankruptcy is not to strip you of all your possessions, but to give you a chance to recover from overwhelming debt. Exemptions allow you to keep essential items needed for daily living and employment. This ensures that you can continue to function and rebuild post-bankruptcy without undue hardship.
What Is Exempt In A Chapter 7 Bankruptcy In Louisiana?
Chapter 7 bankruptcy exemptions in Louisiana include things like:
- Necessary clothing
- Household goods
- Appliances
- Certain types of jewelry
- Pensions and retirement accounts
- Tools of your trade
- Some equity in motor vehicles
There is a homestead exemption that protects a certain amount of the equity in your primary residence, so you may not even have to sell your home. These exemptions are subject to specific limits in value and type, which our Chapter 7 bankruptcy lawyer, Mr. Raley, can explain.
Can You Keep Your Car If You File For Chapter 7 Bankruptcy In Louisiana?
Yes, in most cases, you can keep your car when you file for Chapter 7 bankruptcy in Louisiana. There is an exemption limit for vehicle equity, which our lawyer can discuss with you during your consultation. This ensures that you can still go about your daily activities, such as commuting to work or transporting family members.
Contact Us Today
Are you feeling overwhelmed with debt and unsure about the future? Contact attorney Raley today for a free consultation in which you can discuss your specific situation in detail. He has designed his consultations to provide clarity and confidence as he explores his clients’ options with them. He is ready to help you understand how bankruptcy can offer the relief you need and how he can assist you in protecting as much of your property as possible.
Start your journey toward financial freedom with a lawyer who cares deeply about making your process as clear and straightforward as possible. Reach out today – let attorney Raley put bankruptcy law on your side. From our offices in Bossier City, we serve Bossier Parish, Shreveport and the surrounding communities.