What Assets Can I Protect If I File Bankruptcy?
Hi, this is Ike Shulman of Shulman Law Office. Exemptions help you determine how much of your property you get to keep when you file for bankruptcy. Exemptions play different roles depending on whether you are filing a Chapter 7 or Chapter 13 bankruptcy. Exemptions allow you to keep a certain amount of assets safe in bankruptcy, such as an inexpensive car, professional tools, clothing, and a retirement account.
If you can exempt an asset, then you don’t have to worry about the bankruptcy trustee appointed to your case taking it and selling it for the benefit of your creditors. Many exemptions protect specific types of property, such as a motor vehicle or furniture, up to a particular dollar amount. Sometimes an exemption protects the entire value of the asset. Some exemptions, called “wildcard exemptions,” can be applied towards any property you own.
The purpose of bankruptcy isn’t to strip you of all of your belongings—it’s to give you a fresh start. If you have any questions about bankruptcy, contact me at 408-297-3333 or by email at ike@ikeshulmanlaw.com.