Bankruptcy Protection - Saving Your Assets
Bankruptcy was designed to help out people who are in serious financially situations.
It is considered a protection against the range of things that can threaten you when you have debt problems.
It is a serious way out of debt and should only be considered as a last resort.
How Bankruptcy Protects You Bankruptcy protects you from having court cases filed against you and from having your property seized.
In addition, you will be given the chance to save your assets and avoid having your finances ruined further through collection actions.
Bankruptcy protection is the main benefit of bankruptcy.
Most people assume that clearing debts is the main benefit.
However, before bankruptcy laws people could be jailed, forced to work and have their property taken away due to debt.
Things to Consider About Bankruptcy Protection Since bankruptcy is a legal process, there are a lot of different factors involved that you must consider.
The two main things you will want to think about before filing are exemptions and unqualified debts.
Exemptions are assets that you can keep despite filing bankruptcy.
There are both federal and state exemptions.
You should choose the exemptions that work best for your situation.
In most cases your home and personal belongings are protected, however, anything considered excessive in value is often not protected.
Some debts are not able to be claimed and cleared through bankruptcy.
Things like child support and student loans are examples of debt that can not be cleared through filing bankruptcy.
You should really consider an alternative to bankruptcy if you have mostly unqualified debts.
Bankruptcy is not for everyone, so you really have to consider everything before you start the process.
Best Scenario for Bankruptcy Protection The best scenario for filing bankruptcy depends on the type of bankruptcy being filed.
Below the criteria for a successful filing are listed for both main types of individual bankruptcy types.
For those filing Chapter 7-
A person should be able to wipe out all or the majority of their debt while also being able to hold onto the majority or all of their assets.
It is considered a protection against the range of things that can threaten you when you have debt problems.
It is a serious way out of debt and should only be considered as a last resort.
How Bankruptcy Protects You Bankruptcy protects you from having court cases filed against you and from having your property seized.
In addition, you will be given the chance to save your assets and avoid having your finances ruined further through collection actions.
Bankruptcy protection is the main benefit of bankruptcy.
Most people assume that clearing debts is the main benefit.
However, before bankruptcy laws people could be jailed, forced to work and have their property taken away due to debt.
Things to Consider About Bankruptcy Protection Since bankruptcy is a legal process, there are a lot of different factors involved that you must consider.
The two main things you will want to think about before filing are exemptions and unqualified debts.
Exemptions are assets that you can keep despite filing bankruptcy.
There are both federal and state exemptions.
You should choose the exemptions that work best for your situation.
In most cases your home and personal belongings are protected, however, anything considered excessive in value is often not protected.
Some debts are not able to be claimed and cleared through bankruptcy.
Things like child support and student loans are examples of debt that can not be cleared through filing bankruptcy.
You should really consider an alternative to bankruptcy if you have mostly unqualified debts.
Bankruptcy is not for everyone, so you really have to consider everything before you start the process.
Best Scenario for Bankruptcy Protection The best scenario for filing bankruptcy depends on the type of bankruptcy being filed.
Below the criteria for a successful filing are listed for both main types of individual bankruptcy types.
For those filing Chapter 7-
- Limited assets that are exempt
- Inability to repay debts through asset sale or through employment
- Limited or no unqualified debts
- A stable and secure job that enables you to repay debts
A person should be able to wipe out all or the majority of their debt while also being able to hold onto the majority or all of their assets.
