Protecting Properties From Creditors After Bankruptcy
Legally speaking, what are the properties that can be kept after bankruptcy?
Upon declaration of and qualification for bankruptcy, the first thing that comes to mind is how to save specific properties such as house, vehicles, retirement account, life pensions or annuities, and other personal items as well. This is the reason why most individuals who intend to declare bankruptcy would rather put the declaration on hold for the time being.
However, putting off bankruptcy for a considerable length of time may result to creditors acquiring judgments against your properties which may result to levies of property, both tangible and intangible, including bank accounts, house liens or even seizures of properties. In fact, a judgment ordering garnishment of wage is likewise possible.
The effect of a verified bankruptcy petition is that it proscribes creditors from collecting or enforcing debts against you. Since “exemptions” from judgments are a valid legal defense, many people are able to protect their house and car from collection judgments. In a nutshell, exemptions are a list of real and personal properties exempt from execution of a judgment. Different exemptions lists are provided both under state and federal law. Another remedy available to judgment debtor to keep some properties is the “reaffirmation” of the debt which the properties guaranteed. However, despite the existence of these legal remedies to protect your property against an execution judgment, it is still vital to consult a lawyer with the expertise and experience on the matter and who willfully devote full focus to provide you with the best possible legal remedy.
Chapter 7 and Chapter 13 Options
Of course, petition for bankruptcy does not make your property immune from judgment without any cost. In the event that your house guarantees a debt or the title of your car collaterals a loan, the principal debt still needs to be satisfied. Application for bankruptcy under Chapter 7 is permissible only when you are able to update your monthly payments to enable you to keep your house or car. However, an alternative remedy under Chapter 13 is available for you in the event that you are unable to update your payments.
It is Cornwell Law Firm’s commitment to ensure that all legal remedies are made available to you to protect the properties that mean to you the most. Since bankruptcy involves a plethora of variations, it is essential to spend as much time as possible in informing you of all the repercussions of actions involving bankruptcy.
Bankruptcy attorney Keith Cornwell of Cornwell Law Firm is always ready to listen and discuss any possible action relating to bankruptcy. Just call (404) 791-4449 for a free consultation. Inquiries may also be coursed through our contact form.
Our expertise is to find all possible relief under the Bankruptcy Code to help people filing bankruptcy. Legally speaking, we are a debt relief agency.