The thought of filing for bankruptcy can be frightening to many people. The stress of limited finances and creditor harassment can cause some to make poor choices, but these choices may only worsen an already serious situation. The way to avoid making further mistakes is to contact a bankruptcy law attorney who knows the right steps to take at every juncture of the process.
Learn More About Chapter 7 Bankruptcy
The new bankruptcy laws that went into effect in October of 2005 did not, we repeat, did not put Chapter 7 bankruptcy relief out of reach for most people. Now, it just takes more work by attorneys who help people to get it.
At Prescott & Pearson, P.A., we help people in Minneapolis, St. Paul and throughout the state of Minnesota to make the right choices with respect to bankruptcy — and to obtain the sorely-needed debt relief afforded by Chapter 7 of the U.S. Bankruptcy Code. Our attorneys focus solely on bankruptcy and have handled nearly 70,000 cases. Said differently, this is all we do and we do it well.
Call or contact our lawyers today for a free consultation regarding any bankruptcy or debt relief issue.
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Filing for bankruptcy protection isn't the end of the world. More and more, in fact, people from all walks of life are finding that bankruptcy is their only real option for getting out from under crushing amounts of debt and regaining control of their lives. For the answers, experienced attorneys and help you need — contact Prescott & Pearson P.A. in New Brighton, Minnesota.
Stop creditor harassment. Stop foreclosure proceedings. Start living life without the crushing debt or the fear that comes with it. Bankruptcy can make all of this happen for you, and more. Talk to the experienced bankruptcy lawyers of Prescott & Pearson P.A. about your debt relief options: 651-968-8096 or 888-366-0827 (toll free).
Exempt vs. Non-exempt Property Under Chapter 7
In a Chapter 7 liquidation case, the debtor must relinquish certain property to the bankruptcy trustee so that he or she can sell the property and use the proceeds to pay off debts. Property of the bankruptcy estate is broadly defined under Section 541 of the Bankruptcy Code. The estate is technically the legal owner of all of the debtor's property and consists of all legal and equitable interests that the debtor has in property at the initiation of the bankruptcy case. Income that the debtor earns after the date of the petition is not included in the estate. Debtors, whether they are businesses or individuals, are often justifiably concerned about what property they will be allowed to keep and what they must give up. A bankruptcy lawyer at Prescott & Pearson P.A. in New Brighton, Minnesota can answer these and other questions, allay fears and keep the process moving forward as painlessly as possible.
A debtor must file a schedule of exempt property with the court. Exempt property is property that the debtor can protect from liquidation. The Bankruptcy Code allows each state to adopt its own exemption laws, which the debtor can select instead of the federal exemptions. It is important to consult with an attorney who can explain the exemptions available under your state's laws and how they compare to the available federal exemptions.
Non-exempt Property
Items that the debtor usually must forfeit include:
- Expensive musical instruments, unless the debtor is a professional musician
- Collections of stamps, coins and other valuable items
- Family heirlooms
- Cash, bank accounts, stocks, bonds and other investments
- A second car or truck
- A second home or vacation home
Exempt Property
Certain types of property are exempt, meaning that the debtor can keep that property. Exempt property includes:
- Motor vehicles, up to a certain value
- Reasonably necessary clothing
- Reasonably necessary household goods and furnishings
- Household appliances
- Jewelry, up to a certain value
- Pensions
- A portion of the equity in the debtor's home
- Tools of the debtor's trade or profession, up to a certain value
- A portion of unpaid but earned wages
- Public benefits, including public assistance (welfare), social security and unemployment compensation, accumulated in a bank account
- Damages awarded for personal injury
Conclusion
If you have questions about what property you will be allowed to retain if you file for bankruptcy under Chapter 7 of the Bankruptcy Code, it is prudent to seek the counsel of an experienced and knowledgeable bankruptcy attorney at Prescott & Pearson P.A. in New Brighton, Minnesota who can respond promptly and accurately and put your mind at ease.
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