Hello, my name is Susan Farris and my hobby is learning about the law. I have an uncle who is an attorney and I've always looked up to him and that's why I find subjects on law very interesting. Through speaking with my uncle and doing research on my own, I've learned about all the different fields of law. Each field of law centers on its own subject and most attorneys specialize in a certain area of law. These include criminal, personal injury, family, bankruptcy, criminal, immigration and business. I find each one of these fields very interesting and I have the utmost admiration for lawyers because they help people through their legal struggles. I wanted to share this information with others who have questions about the different types of attorneys and the law.
Choosing to go through a Chapter 7 bankruptcy is difficult. In Chapter 7 bankruptcy, the court may eliminate all, or most of your debts. The elimination of your debt may come at the cost of your home or other assets. Learning what to expect in a Chapter 7 bankruptcy is critical for being prepared for what may happen to your assets.
What Happens To Your Home
Under Chapter 7 bankruptcy there is a property exemption. This property exemption protects certain types of property up to a certain dollar amount. Each state has different rules for property exemptions. If your equity in your property exceeds the amount of the property exemption, it is likely that the bankruptcy trustee will try to sell it to pay for your debts.
When it comes to your vehicle in Chapter 7 bankruptcy, you are allowed to keep a modest vehicle. The court respects that you may need transportation to get to work and run errands. However, whether or not you get to keep your vehicle is dependent on how much equity you have in your car, and whether you lease or own your vehicle.
If you lease your vehicle, under a Chapter 7 bankruptcy you will have to decide if you'll continue the lease. If you continue the lease you will be able to keep your vehicle. However, if you don't, it's likely that your car will be repossessed.
If you own your vehicle, depending on its value you may be able to keep it. Your bankruptcy attorney will be able to advise you whether or not the trustee will seize your vehicle to help pay your creditors.
Dismissing Your Bankruptcy
If the bankruptcy trustee moves to sell assets of yours that you want to hold on to, you may not be able to save them. Your lawyer could potentially file for dismissal of your bankruptcy. However, if the court finds that your creditors are harmed by your move to dismiss your bankruptcy, the dismissal will not be approved.
There is an alternative to dismissing. If it is feasible, your lawyer may advise you to move your Chapter 7 bankruptcy to a Chapter 13 bankruptcy. This could preserve any assets that you may lose. However, instead of your debts being liquidated as in a Chapter 7 bankruptcy, you would have to work out a payment plan in your creditors under a Chapter 13 bankruptcy.
Before you make any decisions to file any bankruptcy be sure to consult a bankruptcy attorney like Attorney Joseph Aguglia. Having a lawyer will help guide you through the bankruptcy process so you know what to expect every step of the way.Share
29 October 2015