Bankruptcy Property Exemptions
The process of bankruptcy offers debtors a clean slate when they are overwhelmed by financial burdens. Once a bankruptcy case is completed, however, the debtor will still need basic possessions and assets to move their life forward. Fortunately, the Bankruptcy Code recognizes these basic needs and provides a variety of property exemptions for debtors. If property is exempt, it will not be taken by the trustee and the debtors will be able to keep it through the bankruptcy.
Under the bankruptcy laws, a debtor is required to submit a schedule or list of real and personal property they own as of the date the case is filed. In addition, they are required to list all property that they claim as exempt. The schedule must include a description of the property, specifying the law authorizing the exemption, and list the value of the exemption and its market value. This information allows parties involved in the case to evaluate the exemption claim and submit any legitimate objections within 30 days from the meeting of the creditors. If someone objects, they must prove that the exemption has been improperly claimed.
Every bankruptcy case is evaluated separately but in most cases, the debtor does not have to give up any of their property or necessary possessions. During and after the closing of the case, the exempted property is protected by law. In fact, not only are you allowed to keep the exempted property, but also the equity, if any, that one may have on the property. Equity is the difference between the value of the exempted property and the remaining debt.
Each states exemption laws differ. Some state allow unlimited homestead exemptions while others allow very little. The difference between keeping your assets in a bankruptcy case and losing them is often the quality of the attorney that represents you.
If you are seriously considering bankruptcy and you live in Southern California, you need to consult with an attorney who understands the intricacies of California bankruptcy laws and the related exemptions. Not all bankruptcy attorneys are the same. While the process appears complicated, a Southern California bankruptcy attorney will be able to help you understand your options and avoid making bad decisions. You get one chance to file bankruptcy right the first time. The California bankruptcy attorneys at Borowitz & Clark know what they’re doing, because bankruptcy is all they do. Unlike many firms, they never leave a paralegal or secretary in charge of a case. That’s why their cases succeed at such a high rate—even higher than many other bankruptcy firms. For a free consultation, contact a qualified Los Angeles bankruptcy attorney from Borowitz & Clark toll-free at 800-509-3200, or visit www.blclaw.com.
Brian Reed. Southern California bankruptcy – If you’re filing for bankruptcy in Southern California, contact Borowitz, Lozano & Clark, experienced bankruptcy attorneys who take your case from start to finish.
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