Exempt and Non-Exempt Property
If you are struggling with a difficult financial situation, then you should know that you still have options for resolving your debt. As a consumer, you may be eligible to file for either Chapter 7 or Chapter 13 bankruptcy.
Under Chapter 7 bankruptcy, many of your unsecured debts will be discharged, and your assets will be divided into exempt and non-exempt property. All non-exempt property will be sold and/or used to pay off the remaining secured debts and unsecured debts, such as child support, that could not be eliminated.
Dividing Your Property
After you file for Chapter 7 bankruptcy, you will be appointed a trustee by the court. This individual will divide up your property and assets into exempt and non-exempt items. Typically, exempt property includes the following:
- Motor vehicles
- Reasonable appliances and furniture
- Clothing
- Some jewelry
- Portion of equity in your home
- Any tools used for your work
- Public benefits
- Earned damages
This leaves items such as expensive collections, cash, second homes and vehicles, stocks and bonds, heirlooms, and expensive instruments to be sold as non-exempt property. The money earned from these goods will be used to resolve your debt.
It can be difficult to part ways with assets that you bought with your own, earned money. An experienced bankruptcy attorney can help guide you through this process, however, and make it a bit easier on you.
Contact Us
If you would like to learn more about exempt and non-exempt property, or if you are ready to file for Chapter 7 bankruptcy, then the Birmingham bankruptcy lawyers of Greenway Law, LLC can help. Contact us today at 205-324-4000 to speak with an attorney about your options.