The thought of filing for bankruptcy can be frightening to many people. The stress of limited finances and creditor harassment can cause some to make poor choices, but these choices may only worsen an already serious situation. The way to avoid making further mistakes is to contact a bankruptcy law attorney who knows the right steps to take at every juncture of the process.
Southfield, Michigan, Bankruptcy Lawyer
If you are struggling with debts that you can't afford to pay off, keep in mind that you have options. Debt is temporary, and debt relief is always within reach.
By filing for Chapter 7 bankruptcy, you can have many of your debts discharged entirely. An experienced attorney can help you exercise your rights and take control of your situation. Through bankruptcy, you can:
If you would like to schedule free initial consultation at the law firm of Sheryl A. Shoebottom, PLLC, call today at 888-343-9145 or contact the firm online.
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The law office of Sheryl A. Shoebottom, PLLC, offers experienced, affordable bankruptcy services. Focusing exclusively on bankruptcy, the firm is able to handle almost any situation. You can start on the path to debt relief today.
At the law firm of Sheryl A. Shoebottom, PLLC, you can receive personalized, attentive service as you go through the bankruptcy process. You will be able to speak with Ms. Shoebottom directly about any questions you may have while your case is in progress.
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 Sheryl A. Shoebottom, PLLC in Southfield, Michigan 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 Sheryl A. Shoebottom, PLLC in Southfield, Michigan who can respond promptly and accurately and put your mind at ease.
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