LA County Bankruptcy - How to Retain your Assets

One of the largest concerns that many people face when filing for bankruptcy is the idea that they will have to sell all of their possessions in order to pay back creditors. The truth is, no matter how much you owe, you will always be able to retain at least some of your possessions. Depending upon the type of bankruptcy you file and your particular situation, you may be able to keep all of your assets and still enjoy the financial freedom and protection that bankruptcy has to offer.

If you have a steady income and can repay a part of your debts, Chapter 13 bankruptcy will allow you to retain your assets as long as certain conditions are met. You will not have to worry about losing your home, your bank account, or any other possessions as long as you complete your repayment plan as agreed upon during the course of the bankruptcy filing. If, on the other hand, you do not have a steady income and cannot afford to pay off any debts, you will need to file for Chapter 7 bankruptcy, which is a liquidation bankruptcy.

However, even if you do need to file for Chapter 7 bankruptcy, you still have the ability to retain a substantial amount of your own possessions. This is because bankruptcy law provides for exemptions. Exemptions are dollar amounts for property that you own that is considered to be essential. In many instances, you will be able to keep your home, your car, clothes, appliances, and other necessary items. If you don't have much in the way of possessions, you may be able to keep everything that you own and still file for Chapter 7 bankruptcy. These types of bankruptcy proceedings are called 'no asset' cases, because there are no assets for the bankruptcy trustee to recover and sell on behalf of creditors.

You may be able to keep other, valuable assets as well, even if your case does have assets that could be sold. This is because the bankruptcy trustee must weigh the cost of moving and storing anything that is to be sold, when considering the price that the item could likely bring in. If it is determined that it would be too costly or to sell the item and there would be nothing left to pay the creditors, then the bankruptcy trustee may abandon that asset back to the estate. This means that you would be able to keep your item, even if it is not part of an exemption.

No matter what type of bankruptcy you file, changes are good that you will be able to retain more property by filing for bankruptcy than by letting creditors have their way. You can avoid levies, garnishment, and repossessions that would take away valuable property and assets by filing for bankruptcy protection. California's laws provide for two different types of exemption laws, in addition to other supplemental Federal exemptions that you may be entitled to use.

Therefore, if you are considering bankruptcy but are concerned about your assets, you should speak with a reliable, experienced Los Angeles County Bankruptcy Attorney about how California's exemptions and the Federal supplemental exemptions can help you to retain your property. Contact our office today and arrange for a free initial case evaluation. We will assess your situation and advise you of how best to take advantage of bankruptcy laws in Los Angeles County so that you are able to retain your assets and still seek the financial freedom of bankruptcy protection.