Exempt Property In Chapter 7 Personal Bankruptcy Filings

A leader in personal bankruptcy in Orange County and throughout Southern California, Fishback Law Corporation can help you make a fresh start with a Chapter 7 consumer bankruptcy, providing you with debt relief and more disposable income, and ending the harassment and worry of foreclosures and repossessions by banks, bill collectors and other creditors. Our office strives to achieve a successful elimination of debt for our clients without a loss of their valuable property.

Exempt Property And No-Asset Bankruptcies

In a Chapter 7 bankruptcy, also known as liquidation or straight bankruptcy, the debtor’s assets are sold and converted to cash, or liquidated, in order to pay off the debtor’s creditors. Any remaining debts may then be discharged by the bankruptcy court, meaning that the debtor is no longer responsible for repaying them.

That description does not make Chapter 7 sound very attractive until you realize that the law allows you to exempt a great deal of property from liquidation. In fact, in most instances people filing for Chapter 7 have a “no-asset” bankruptcy, meaning that they receive a discharge of their debts without having to sell any of their property. Some of these exemptions include:

  • An amount of the equity built up in your home
  • An amount of equity built up in a burial plot purchase
  • An amount of equity built up in a car
  • A certain amount for household goods and furnishings, clothing, appliances, books, animals, crops and musical instruments
  • A certain amount for jewelry
  • A certain amount for tools of the trade
  • An unmatured life insurance contract
  • Certain life insurance proceeds
  • Health aids prescribed by a doctor or health care professional
  • Social Security
  • Unemployment compensation
  • Veterans’ benefits
  • Disability benefits
  • Certain spousal support payments
  • Certain stock bonuses, pension benefits and similar benefits
  • Crime victim reparations
  • Certain personal injury or wrongful death awards

Our Dedicated Legal Team Can Help

We help you through the entire process of filing for personal bankruptcy in Orange County, Los Angeles, Riverside, San Bernardino County and San Fernando Valley, beginning with a complete analysis of your situation that includes examining your exempt and nonexempt assets. You will know from the very start what to expect from your bankruptcy discharge, so there should be no surprises along the way. Start today to eliminate your debt. Contact Fishback Law Corporation online or call 949-274-7080 for a free consultation.