Chapter 7 and Exempt Property

In the case of Chapter 7 bankruptcy, in which an individual opts to have his or her material possessions liquidated in order to pay his or her debts, some property is considered exempt. Exempt property is not liquidated, meaning the debtor is allowed to keep it.

Determining what property is exempt requires extensive legal knowledge. If you or someone you love is currently headed toward bankruptcy, contact the Boca Raton bankruptcy lawyers of Eric N. Klein & Associates, P.A. at 561-353-2800.

Commonly Exempted Property

There is an established precedent of what is considered exempt property. For most cases, individuals are allowed to keep their home and one automobile. Additionally, individuals will not be forced to give up any gifts they receive or any money that they have been awarded by a court of law.

In many cases, individuals who declare bankruptcy do not possess any nonexempt property; that is, the individual declaring bankruptcy has no property that is eligible for forced liquidation.

Liquidation of property is a feature that is unique to Chapter 7 bankruptcy. Individuals that have no property to liquidate may be better advised to declare Chapter 13 bankruptcy, which allows individuals to work out payment plans with their creditors.

Contact Us

Bankruptcy is a difficult and complicated legal process. If you or your loved one is headed toward bankruptcy, do not go through it alone. Contact the experienced Boca Raton bankruptcy attorneys of Eric N. Klein & Associates, P.A. at 561-353-2800 to discuss your financial options.