Orange County Bankruptcy Lawyer
One of the most common myths associated with bankruptcy is that the debtor will lose all of his or her property. This is simply untrue. It is true that in some situations certain property may be subject to liquidation, but this usually only applies in a Chapter 7 filing and will only apply to limited property. An Orange County bankruptcy lawyer can explain exactly how your property and assets may be affected if you seek debt relief through bankruptcy.
What Property Can I Keep if I File for Bankruptcy?
In California, there are particular bankruptcy exemptions that may apply when you file under Chapter 7. There are actually two different categories of exemptions that a debtor may choose. Following is a list of property that may be considered exempt and therefore protected during the bankruptcy process:
- Equity in your home
- Equity in your primary motor vehicle
- Personal property
- Furniture, home appliances, cooking utensils, etc.
- Family heirlooms
- Pensions in some situations
- Insurance benefits in some situations
- Health aids
- Personal injury or wrongful death lawsuit recoveries
- Public benefits in some situations
- Tools of one’s trade
In general, there are limits to the value of property which may be protected during bankruptcy. It is important to discuss your particular property and assets with an attorney who can not only inform you of how bankruptcy exemptions may affect you but also who can work with professionals to properly determine the value of property.
We highly recommend involving a lawyer in this situation, not only because it is a complicated matter but because it will have legal and financial ramifications. If you attempt to transfer or gift property before filing in an attempt to protect it, you may find that your bankruptcy petition is denied or that you are even accused of fraud. An attorney can help you properly address these matters.
Contact an Orange County Bankruptcy Attorney at our firm today.