If you are like many people who are so deep in debt they have a hard time making the minimum payments on all of their bills, you may be considering filing for bankruptcy. The social stigma attached to bankruptcy is not as strong as it was in the past as many people are using the federal laws to help them erase their debt and start over.
While the bankruptcy laws are designed to help people like you without enough income to pay all of your bills, the laws aren’t as helpful if you have significant assets. Some assets are exempt from bankruptcy, such as your retirement savings in a 401(k) and IRAs. However, the exemptions only apply to the funds that you saved for retirement, not the accounts you may have inherited from the estate of loved ones. A Bankruptcy Attorney in Moore OK may advise you whether or not bankruptcy is a good option for you if you recently inherited a retirement account.
Some of your assets, such as your personal vehicle, personal clothing, household goods and furniture, and tools used for a trade, are exempt. Reasonable value rules apply to exemptions and the bankruptcy trustee may decide that some of your property exceeds the reasonable value. This may happen to you if you own very expensive clothing or household goods. There are limits to exemptions for personal vehicles. The trustee may require you to surrender your nonexempt property to be sold off to pay creditors. However, if you have exempt cash on hand to pay the trustee the nonexempt value, you may be able to keep your property.
An experienced Bankruptcy Attorney in Moore OK, such as Cain Law Office, can review the specifics of your financial situation and help you determine the right option for handling your debts. Many people are able to exempt most or all of their personal property. If you have significant assets that you don’t want to lose in Chapter 7 bankruptcy, Chapter 13 may be a better option for you. Your attorney may compare the numbers to determine which portion of the bankruptcy code will be most advantageous for you.
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