No one looks at property the same way the law does. Most people look at their property in terms of things they own and never make any further distinctions. Maybe you have a prized doll collection, or a great collection of tools so you can rebuild cars. Regardless, most people look at property as extensions of themselves and they do not spend a lot of time wondering about creditors perfecting security interests in chattels or commercial paper. One of the first things you will notice when you begin investigating whether to file for bankruptcy is that the law puts a great deal of emphasis on such seemingly arbitrary classifications and you can find yourself overwhelmed with legal jargon.
Bankruptcy Attorney In Phoenix, Bankruptcy Trustee, Bronx Bankruptcy Lawyer,
Not to worry. Although people can, and do, spend their entire professional life struggling with classifying property, it is quite possible to get a working knowledge of what these terms mean. The purpose of this article is to help you gain a firm grasp of the distinction between "Exempt Property" and "Nonexempt Property".
First, why is this distinction important? Quite simply, the law will allow you to keep your property that it classifies as "Exempt Property". Exempt property is defined by statute. Every state is different, but typically the law allows you to keep equity in your home, although the amount varies considerably from state to state. You are also typically allowed to keep your car, clothing, household furnishings and appliances, jewelry, life insurance, retirement funds, public benefits and the like. Each state, however, sets a different value on each exemption. For example, in Kansas, a single person filing for Chapter 7 bankruptcy can claim an exemption of $20,000 for a single vehicle. However, the exemption is unlimited if the vehicle is designed or equipped for a disabled person.
If the law deems property to be nonexempt, then the bankruptcy trustee has a right to sell the nonexempt property to satisfy your debts. For instance if you have $10,000 in cash, the trustee might be able to take your money and apply it to your debts. Other examples of property that are typically considered nonexempt are: bank accounts, stock, bonds, non-residential real estate, boats, planes, and the like. In the event you want to keep some nonexempt property, you need to consult with a bankruptcy attorney to determine the best strategy to let you keep your property. Failing to disclose the nonexempt property to the bankruptcy trustee is not an option. That will result in painful consequences and it can even include being prosecuted for perjury or fraud. Your best course is to consult with a skilled bankruptcy attorney so you can determine the best way to keep your property.
Bankruptcy Attorney In Phoenix
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Attorney In Phoenix
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment