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Breaking the Bankruptcy Burden: How Exemptions Can Free You From Property Loss
When bankruptcy comes to mind, thoughts of movers carrying all of your belongings away may not be too far behind, especially when feelings of worry and stress are already present as you say goodbye to your ten-year-old sofa and the auctioned still-life hanging over your bed.
However, while you may equate bankruptcy to limitless loss, the common reality is that exemptions can help to ensure your assets are protected and allow you to keep valuables you may be hesitant to let go of.
So, before you start having nightmares about property loss, consider this:
What Exactly Is Exemption?
Bankruptcy can seem like a nonnegotiable for losing everything. However, exemption laws, existing in both the bankruptcy code and state law, protect your property so that even if you are looking for a fresh start, you don’t have to start from scratch.
Property that may be exempted during the bankruptcy process includes motor vehicles, home real estate, life insurance, household goods, and more. According to Upsolve, more than 95% of those who file bankruptcy can protect all of their property with exemptions, meaning that any fears of losing your belongings, especially in a chapter 7 bankruptcy, can be forgotten.
Additionally, suppose your property equity is equal to or less than the state exemption amount. In that case, you will be able to keep the property in a chapter 7 bankruptcy and won’t need to pay extra in a chapter 13 bankruptcy.
Put simply, an exemption can allow you to file for bankruptcy without losing assets that will provide you with a better, more promising future.
Getting Down To The Details
Maybe you’ve done a little research of your own, and now you’re wondering — what’s the difference between federal and state exemptions, and how does the law apply to Florida residents?
Every individual state has its own exemption rules when it comes to filing for bankruptcy. However, a select few states allow their citizens to choose a federal exemption option created by congress that applies regardless of what state you live in.
While Florida does not have a federal option, state exemptions include motor vehicles, home real estate, personal property, wages, pensions, alimony and child support, and more.
Receive Your Bankruptcy Exemption Today
Whether you are considering filing for bankruptcy or need assistance navigating the process to ensure your property is protected, Dolaghan Law is here to help.
We know that financial trouble can feel like a never-ending burden you are facing alone; that being said, with Dolaghan Law, you can be assured that you’re not alone. We’ll be by your side to walk you through the necessary steps towards filing for bankruptcy.
To speak to an experienced bankruptcy attorney or get more information about exemptions, contact our office or send us a message. Don’t wait to feel the relief that comes with breaking free from debt and reclaiming your life. Call 904-354-4935 today!