People in Geneva facing financial difficulties in these uncertain times may wonder if filing for bankruptcy is right for them. One fear they may have regarding bankruptcy, though is that they will lose everything in the process and be destitute. However, this fear is unfounded as there are a variety of exemptions that allow people filing for Chapter 7 bankruptcy to keep certain assets so they can move forward on solid financial footing.
What are some unlimited Chapter 7 bankruptcy exemptions?
In a Chapter 7 bankruptcy, your assets will be sold, and the proceeds used to pay you're your creditors. This is why it is referred to as “liquidation bankruptcy.” However, when you file for Chapter 7 bankruptcy, you are allowed to keep any property that is “exempt” under state or federal law. Some examples of exempt assets in which a person can keep no matter what the value of the asset include:
- Family photographs
- Necessary clothing
- Qualified retirement plans
- IRAs
- Life insurance policies
What are some limited Chapter 7 bankruptcy exemptions?
Chapter 7 bankruptcy also allows for some assets to be exempt up to a fixed dollar amount. Some examples of this include:
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