For most consumers, life before bankruptcy is fraught with financial difficulties. It is important to remember that although bankruptcy is not the first resort, it is best not to wait too long to take action. If you are facing what seems to be insurmountable debt, contact an attorney at once in order the make the best of a bad situation.
Legal Information about Bankruptcy Law
Is a Chapter 13 or a Chapter 7 bankruptcy right for you? The Law Office of Stephen H. Swift, P.C. can explain bankruptcy and help you make the decision that provides maximum debt relief to you.
Some basic information about bankruptcy law is provided below and on our FAQ page. You probably have additional questions about your situation. In a free consultation, an attorney at our firm can review your financial situation and discuss what we can do to help you eliminate or reduce your debts. It could be the first step toward a new financial life.
Free Consultation with a Bankruptcy Lawyer
For a free initial consultation with the Law Office of Stephen H. Swift, P.C. in Colorado Springs, call 719-359-8179 or toll free at 866-893-2440, or use the form below to contact us online.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Thank you for contacting Law Office of Stephen H. Swift, P.C. Your message has been sent.
Call us now
or use the form below.
The bankruptcy process provides many financially-stressed people an opportunity to obtain debt relief in just a few months and the ability to start rebuilding credit within a year or so after filing.
People filing for bankruptcy can keep most or all of their personal property and in many cases they can keep their houses as well. The attorneys at the Law Office of Stephen H. Swift, P.C. understand how to maximize property exemptions and stop foreclosure.
Exempt vs. Non-exempt Property Under Chapter 7
In a Chapter 7 liquidation case, the debtor must relinquish certain property to the bankruptcy trustee so that he or she can sell the property and use the proceeds to pay off debts. Property of the bankruptcy estate is broadly defined under Section 541 of the Bankruptcy Code. The estate is technically the legal owner of all of the debtor's property and consists of all legal and equitable interests that the debtor has in property at the initiation of the bankruptcy case. Income that the debtor earns after the date of the petition is not included in the estate. Debtors, whether they are businesses or individuals, are often justifiably concerned about what property they will be allowed to keep and what they must give up. A bankruptcy lawyer at Law Office of Stephen H. Swift, P.C. in Colorado Springs, Colorado can answer these and other questions, allay fears and keep the process moving forward as painlessly as possible.
A debtor must file a schedule of exempt property with the court. Exempt property is property that the debtor can protect from liquidation. The Bankruptcy Code allows each state to adopt its own exemption laws, which the debtor can select instead of the federal exemptions. It is important to consult with an attorney who can explain the exemptions available under your state's laws and how they compare to the available federal exemptions.
Non-exempt Property
Items that the debtor usually must forfeit include:
- Expensive musical instruments, unless the debtor is a professional musician
- Collections of stamps, coins and other valuable items
- Family heirlooms
- Cash, bank accounts, stocks, bonds and other investments
- A second car or truck
- A second home or vacation home
Exempt Property
Certain types of property are exempt, meaning that the debtor can keep that property. Exempt property includes:
- Motor vehicles, up to a certain value
- Reasonably necessary clothing
- Reasonably necessary household goods and furnishings
- Household appliances
- Jewelry, up to a certain value
- Pensions
- A portion of the equity in the debtor's home
- Tools of the debtor's trade or profession, up to a certain value
- A portion of unpaid but earned wages
- Public benefits, including public assistance (welfare), social security and unemployment compensation, accumulated in a bank account
- Damages awarded for personal injury
Conclusion
If you have questions about what property you will be allowed to retain if you file for bankruptcy under Chapter 7 of the Bankruptcy Code, it is prudent to seek the counsel of an experienced and knowledgeable bankruptcy attorney at Law Office of Stephen H. Swift, P.C. in Colorado Springs, Colorado who can respond promptly and accurately and put your mind at ease.
Copyright ©2009 FindLaw, a Thomson Business
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.
