Bankruptcy is a viable option that allows for New Jersey consumers to deal with their debt in an organized and efficient manner. However, many people who could benefit from this choice do not move forward because they have concerns over how this process will affect their personal property, specifically Chapter 7 bankruptcy. You may also wonder if filing will mean that you have to give up certain things that are important to you.
Chapter 7 also goes by the name liquidation bankruptcy. This means there is a liquidation of certain assets in order to pay off as much of the outstanding debt as possible. While there are things you may not be able to keep, chances are that you will be able to retain most of your personal property. You do not have to let fears and misconceptions keep you from moving forward with a step that could be good for your financial future.
What will you get to keep?
Naturally, you may wonder what you will be able to keep when you file for Chapter 7 bankruptcy. Bankruptcy laws allow for certain exemptions because the intent of this process is to allow you to deal with certain debts once and for all, not strip you of all of your possessions. Bankruptcy exemptions will likely allow you to keep the following types of property:
- Homestead exemptions likely mean that you will not have to relinquish or liquidate your home in order to complete Chapter 7 bankruptcy.
- Exemptions may also mean that you will be able to keep much of your personal property, such as things you need for work, clothes, vehicles under a certain value and more.
- There are also exemptions available for property that do not fall under a specific category. This differs on a case-by-case basis.
If you would like to learn more about the benefits that bankruptcy can provide or what will happen to your property, you can first reach out for an assessment of your case and explanation of your options.
Take steps toward a better financial future
A better and stronger financial future can be yours by filing for Chapter 7 bankruptcy. This may not be your first choice, but it can provide protection from creditors and allow you to discharge certain types of debt. Your financial future and stability are on the line, and you would be wise not to allow misconceptions and fears about the process to keep you from taking steps that could be good for your future.