Making the choice to file for bankruptcy is not easy. If you are considering this choice, it is probably because you find yourself in a place where you can no longer manage your debt and financial obligations on your own. This is a tough choice to make, and one thing that may be holding you back is concern about your personal property.
You may have a clear need to seek bankruptcy protection, but you may not be sure what that will look like for your daily life. In fact, you may worry that you will lose or have to surrender all of your stuff. In reality, you will probably be able to keep many of the things that are most important to you. There are certain property exemptions available to those who file for Chapter 7 bankruptcy.
What can you keep?
The purpose of bankruptcy is to give a Tennessee consumer who has a significant amount of debt the opportunity to deal with this debt in a productive and organized manner. It is not supposed to leave a person destitute and without many of the things he or she needs. That is why bankruptcy law provides exemptions for certain things. Even if you file for Chapter 7 bankruptcy, which is liquidation bankruptcy, you will possibly be able to retain many of your possessions, including the following:
- Things you need for your job, including tools of the trade and supplies
- Reasonably necessary furniture and appliances
- Personal vehicles worth under a certain dollar value
- Jewelry worth under a certain amount
- Necessary clothing
- Some of your unpaid wages
- Some of the equity in your home
- Damages you won in a personal injury suit
- Public benefits you receive
While you may have to give up some things, it is likely that you can keep many of the things you need to work and live your life as normal. Before you file, you may want to learn more about how the exemptions would work in your situation and what types of assets you may have to give up if you seek Chapter 7 bankruptcy protection.
You don’t have to live your life overwhelmed and overrun by debt. Through bankruptcy, you can deal with certain types of debt once and for all. If you want a better financial future, don’t let fears about losing your property keep you from learning more and pursuing beneficial legal action.