What Can I Keep in Bankruptcy?
Atlanta Bankruptcy Lawyer: Understanding Exemptions
One concern that many of our clients have when considering filing for
bankruptcy is what they can keep and whether they will lose everything they own.
While it is true that
Chapter7 is a liquidation bankruptcy and that means a liquidation of the assets
as well as the debts, it does not necessarily mean that all your assets
will be liquidated.
In fact, that kind of complete liquidation rarely occurs when filing. Our
Atlanta bankruptcy attorneys at Khoshnood Law Firm, P.C. can answer your
questions and provide you with the advice you need so you know exactly
what to expect.
How Are Assets Protected in Bankruptcy?
Most assets are usually protected under certain state laws. When you file
for Chapter 7 bankruptcy, the laws of the state of Georgia provide the
debtor with what are known as “exemptions.” Exemptions do
exactly that: they exempt the value of certain assets from the bankruptcy
estate that is created when a Chapter 7 bankruptcy case is filed. Most
people’s assets are completely protected by the exemptions they
are entitled to under Georgia state law.
These laws provide an exemption for:
- Household goods
- Clothing and apparel
- Motor vehicles
- Tools of the trade
Exemptions in Atlanta Bankruptcy Cases
There is also an exemption for the equity in a primary residence. In addition,
in Georgia, there is also a “wildcard” or “catch-all”
exemption that can be applied to any asset that is not protected by the
other categories of exemptions available. As a result of these exemptions,
most people who file a Chapter 7 bankruptcy are able to keep all assets
and liquidate all debts.
Whether or not you will be able to keep the things they own is a legal
question which an attorney from our firm can answer for you. If you are
unsure about this subject, the safest thing you can do is to speak to
an experienced lawyer.
Call us at (404) 978-4411 to request a
free evaluation with an Atlanta bankruptcy lawyer.