What is a bankruptcy exemption?
A San Francisco bankruptcy attorney lets you know this: What is a bankruptcy exemption?
The bankruptcy code allows for a certain amount of personal property to be excluded from the bankruptcy proceeding. This usually means that those filing for bankruptcy can keep their car, clothes, and other necessities. The bankruptcy exemption is important for those who do not want to lose their car or other personal goods. California has opted out of the federal exemption list and developed its own set of exemptions and related exemption values.
What if I have a lot of equity in my home?
The bankruptcy code allows for a certain amount of home equity to be exempted. In California, that amount is $75,000 for an individual filing for bankruptcy and $100,000 for married couples. The homestead bankruptcy exemption allows those with equity to not worry about whether the home might be sold. If there is a lot of equity then proceeding under a chapter 13 might be the best option instead of a chapter 7 liquidation.
What happens if the bankruptcy exemption does not cover all of my property?If you own more than the exemption limit in California the bankruptcy trustee overseeing your bankruptcy case has the power to sell the property to raise cash to repay creditors. This is generally only a concern in chapter 7 proceedings. Often if the bankruptcy exemption will not cover the entire amount, and the unprotected balance is insignificant, it is safe from liquidation as there are costs associated with the sale of property and those costs are paid out from the sale.
Are there alternatives to liquidation?Yes. If you do not want to risk having your property sold at an auction you can file under chapter 13. You retain control over everything you own and, depending on your income, only pay a certain percentage of what you owe to unsecured creditors. A chapter 13 bankruptcy does not look to liquidation for repayment but rather develops a repayment plan based on future income.
If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!
