Exempt Property in a Bankruptcy
Many people fear that, if they file for bankruptcy, they will lose everything they own. This is a very common misconception. The purpose of filing for bankruptcy is to give you a fresh start free from the burdens of excessive debt, not to take your property and make you start over with nothing. In those limited situations where assets are exposed, we will recommend bankruptcy alternatives.
Bankruptcy law allows you to keep certain property that is necessary for you to live a normal life. This is referred to as exempt property. When you hire the Collegeville, Pennsylvania law firm of Nahrgang & Associates, P.C., we work hard to help you find a debt relief solution that protects your assets.
Understanding Your Rights
Our attorneys have extensive experience in all areas of bankruptcy law. We will take the time to help you understand all your benefits under the law and all the rules regarding the exempt property. We will work with you to determine the best debt relief solution for your circumstances and devise a plan to help you reach your goals.
While this is not a complete list, exempt property includes:
- A certain level of equity in your home
- The equity in your car, up to a certain value
- Household goods and furnishings
- Clothing
- Jewelry up to a certain value
- Tools and equipment necessary to do your job, up to a certain value
- Most retirement accounts
- A “wild card” exemption in any asset, including cash, up to one-half of the house exemption
