Whether you will forfeit any property depends on which type of bankruptcy you file and the nature of your assets. The Hedtke Law Firm will analyze your assets and apply the appropriate exemptions to retain as much of your estate as possible under the law.
We can explain the exemptions that apply to your assets in a free initial consultation at one of our three offices in Southern California:
West Covina • Upland • Moreno Valley
As a general rule, a Chapter 13 bankruptcy protects virtually all of your assets because you are repaying at least some portion of your debts, and Chapter 7 protects most of what you own but may require you to sacrifice some assets to discharge debts.
The following property is just a portion of property protected under California’s exemptions:
If you own your home outright or it is mostly paid off, the excess equity above $100,000 is not protected in a Chapter 7. Equity in a second home or rental property is not exempt. You cannot keep cash and savings accounts in a Chapter 7. Although most of your household possessions are protected, most electronics are not exempt — this includes TVs, stereos and DVD players; however, Chapter 7 Trustees rarely take such items. You can protect nonexempt items by paying their market value as part of your Chapter 13.
Our attorneys will review everything you own and help you look at the “big picture.” Is it worth it to forfeit some property in Chapter 7 in order to discharge thousands or tens of thousands of dollars in debt? Or are you better off filing Chapter 13 to protect certain assets while paying only what you can actually afford of the unsecured debt.
Call us toll free at 626-593-1556 to arrange your free consultation about debt relief and asset exemptions.