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Bankruptcy Exemptions

Let Our Onondaga County Bankruptcy Attorneys Protect Your Assets

If you are thinking about filing bankruptcy, you may be worried about losing your property. You may have heard rumors that if you file a bankruptcy case, you will lose everything you own and will have to start over again from nothing. While bankruptcy will provide you with a fresh start, it will not leave you homeless or cost you your valuables, particularly if you contact Onondaga County bankruptcy lawyer Theodore Araujo to work on pre-bankruptcy planning.

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When you file bankruptcy, all of your property becomes property of the bankruptcy estate. Technically, at the exact moment you file your bankruptcy petition, your property is no longer yours. A Chapter 7 trustee can sell the property, or you have to pay the property’s value into a Chapter 13. However, most people are able to protect most or all of their property or reduce the amount they must pay into a Chapter 13 plan by using bankruptcy exemptions.

The Bankruptcy Code has a list of all the property you can exempt from the bankruptcy estate. New York’s state law also provides a list of items you can exempt. The Bankruptcy Code allows you to choose whether you want to use the federal exemptions listed in the Bankruptcy Code or the exemptions listed in New York’s laws. If your claimed exemptions are legally proper, a Chapter 7 trustee cannot sell exempt property, and a Chapter 13 trustee cannot force you to pay its value into yourChapter 13 plan.

Exemptions are a very important part of planning your path in bankruptcy. Properly claimed bankruptcy exemptions will allow you to protect your assets in a Chapter 7 case and potentially pay less into a Chapter 13 plan. If you claim your exemptions incorrectly, or if you did not engage in appropriate and honest pre-bankruptcy planning, you could lose your possessions or even lose your bankruptcy discharge. Do not trust an inexperienced attorney looking for a quick dollar, and do not try to file bankruptcy yourself. Exempting property requires experience and a knowledge of federal and state exemptions, as well as knowledge of the local trustees and the judges who will be deciding whether your exemptions are proper. The Bankruptcy Law Center and Onondaga County bankruptcy attorney Theodore Araujo have the expertise necessary to make sure you protect yourself and your property. Do not risk overpaying your creditors and losing your belongings—contact Theodore Araujo today for a free consultation.