It is probably the most common type of bankruptcy filed in the United States to save one from piling up debt. A Tampa bankruptcy attorney explains that the idea is pretty simple; if one has a lot of payments pending to be paid to the creditors and the person remains in a terrible situation of not being able to pay then the only way out is to file for the chapter 7 bankruptcies and give oneself a new and fresh start in the financial aspect.
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What Are Bankruptcy Exemptions?
Some debts are not secured due to the absence of collateral on such debts. All the debts that are discharged while filing the chapter 7 bankruptcy will be the unsecured debt. Unsecured debts could comprise a person's medical bills or credit card debt. People are often scared of losing out their assets while filing for bankruptcy. But it's not the case with chapter 7 bankruptcy most of the time. Some specific exemptions will secure your asset and save them from getting liquidated. The exemptions are mostly based on a certain amount and mostly they can cover your entire asset's value.
Common Chapter 7 Exemptions
Let us understand some of the exemptions in the chapter 7 bankruptcy:
· Your home and property
One of the most important points includes that your home and property are exempted up to the amount of $136,925 of the equity. People could even plan to double this amount while both spouses file for bankruptcy.
· Your vehicle
One motor vehicle for the amount of up to $3775 can be protected under automobile protection.
· Personal Cash And Household Items
A certain amount of cash and household items are also protected. A cash amount of up to $475 is protected. There is also a clause for the protection of furniture and other appliances which are covered up to the cost of $12250 and the cost of each item should not exceed $575. The jewelry for about $1700 is also protected.
· Wild card exemption
If there is any other property apart from real estate, Ohio allows the protection on it for the amount of $1250.
Can I Keep My Tax Refunds?
They are not exempted and could easily be added to your bankruptcy estate. Though there is some possibilities like-
· The tax year before your bankruptcy was filed: they will go to the estate and be paid as part of your debts.
· The tax year that your bankruptcy was filed: includes the income after filing for the bankruptcy. You will get to keep the part of your refunds.
· The tax year after your bankruptcy was filed- no effects due to bankruptcy and you get to keep the refunds.
Keeping Your Home and Car
One will have to keep paying the payments if they wish to keep their car and home. Chapter 7 bankruptcy helps a lot in helping you save your assets. We at Galewski Law Group have a team of the best bankruptcy lawyer in Tampa who are always available to bail you out from any such situation.
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