Bankruptcy Can Help You Keep Property
During our three decades of bankruptcy law practice, we have heard this question countless times: “How can I keep my belongings through bankruptcy?” Many people believe that filing for bankruptcy means losing everything — their home, car, appliances and more.
But that’s not true. In fact, most people get to keep many of their belongings while seeking financial relief. If you face foreclosure or repossession of your property, speak with the board-certified bankruptcy lawyers at Rothschild & Ausbrooks, PLLC, in Goodlettsville, by calling 615-866-2265 or toll free 866-656-8909. Learn how bankruptcy works and whether it is the right choice for you in a free and confidential consultation.
What Does It Mean for Property to Be Exempt?
Exempt assets are assets that creditors cannot access during bankruptcy. Typically, exempt property is property essential to living, such as a home, a car and clothes.
Every state has a different rule about which property is exempt from repossession/sale during bankruptcy. In Tennessee, there is a homestead exemption (allowing many individuals to keep their homes), a personal property exemption (up to $10,000) and exemptions for other specific assets such as:
- Burial plots
- Health aids
- Public benefits
- Retirement benefits
- Personal injury recovery/award (up to $7,500)
- Storage containers
For a list of other exempt property, please see our page on exemptions.
Property Exemptions in Chapter 7 and Chapter 13 Bankruptcies
While the types of property exempt from bankruptcy in Tennessee are very similar to other states, the exemption limits are relatively low. Exemption limits look at how much value you have in a piece of property. They vary depending on the size of your family, marital status and other factors. If your property exceeds the exemption limits, you may lose it if you file for Chapter 7 bankruptcy.
That is why we often recommend Chapter 13 bankruptcy to our clients who would like to keep more of their property. Chapter 13 allows debtors to retain assets as long as the repayment plan meets the “best interests of creditors” test. In other words, the plan must pay your creditors at least the amount of money they would get if you had filed for Chapter 7 bankruptcy and your property was liquidated.
There are many state and federal laws that apply to bankruptcy. Having an experienced lawyer on your side who can help you make educated decisions can make all the difference in your case.
Learn How You Can Keep Your Personal Property. Contact Us.
To learn more about the personal property exemptions in a Tennessee bankruptcy, contact Rothschild & Ausbrooks, PLLC. Your conversation with us is both confidential and free. There is a risk in waiting; there is no risk in calling our experienced attorneys.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.