Posted on Saturday, July 17th, 2010
Bankruptcy law allows for individuals to keep property from being sold to pay creditors through “exemptions”. In a Chapter 7 filing, any property which is not claimed as “exempt” is potentially available to be taken by the trustee for paying creditor claims. Therefore, prior to a bankruptcy filing, individuals must list their assets as well as the value of the asset or the equity owned in the asset to determine whether the available exemptions are enough to protect all of the assets.
You should consult with an attorney to determine which exemptions are applicable to you and what is the best way to protect as many of your assets as possible during the bankruptcy.