When an individual or family decides to take the steps to end their financial challenges, they might face other issues. While filing for bankruptcy is often a real and reliable debt relief option, there are factors that individuals should consider. Residents in New Jersey considering bankruptcy should understand what this means regarding their current property and assets. Are they safe from liquidations or repossession? This is where understanding bankruptcy exemptions could help the debtor through the bankruptcy process.
What Exemptions Protect Property In a Chapter 7 Bankruptcy?
When people file for bankruptcy, they are not only concerned about their financial future and whether the process will in fact help give them a fresh financial start, but they are also concerned about their home, car and other property. For the most part, federal exemptions will protect some property and prevent them from being sold in a Chapter 7 bankruptcy.
Items Protected In New Jersey Bankruptcy
For the most part, the individual's retirement accounts, home, vehicle, personal property and house furnishing and certain valuables up to a certain amount are protected in a bankruptcy. In general, federal exemptions provide the best asset protection, but it is important to understand whether the state laws provide more suitable exemptions.
Get More Information from a Chapter 7 Bankruptcy Attorney In New Jersey
Going through the bankruptcy process is an emotional and often difficult event to go through. An individual should be well informed about the process before initiating it. While exemptions could provide some safeguards and protections, they do not protect all the assets and property belonging to the individual. By gaining more information, people are able to better plan for the process and prepare for their future while they are seeking debt relief. Contact a Chapter 7 Bankruptcy Attorney Today!