Exempt and Non-exempt Assets in Bankruptcy
Kansas City Area Attorney Works with Clients to Understand Exempt and Non-Exempt Assets in Bankruptcy
If you are considering filing for bankruptcy, it is crucial that you understand what exemptions you will be able to claim. In Chapter 7 bankruptcy, exemptions are assets that you get to keep. In Chapter 13 bankruptcy, exemptions are used to show what you will pay to your unsecured creditors. Therefore, being clear about what exemptions you will be dealing with will help determine whether you can even file for Chapter 13 or Chapter 7. Kansas and Missouri Debt Relief Lawyer Ronald L. Jurgeson, LLC works with clients to understand the ins and outs of what to expect of the bankruptcy process. He will take you through the entire process, from start to finish, and work with you to keep payments manageable and allow you to maintain the level of comfort with which you and your family have grown accustomed.
Chapter 7 and 13 Bankruptcy Exemptions
In Chapter 7 bankruptcy, property is liquidated to pay your creditors. However, exempt property cannot be sold by your trustee. Whereas in Chapter 13 bankruptcy, you are most of the time allowed to keep all your property and reorganize your debts, but much depends on what you can exempt. The value of any nonexempt assets must be paid to your unsecured creditors. Therefore in a Chapter 13 bankruptcy, exemptions minimize plan payments by reducing the amount you are required to pay creditors.
Exemptions often include things such as a certain dollar amount of equity towards your home, your motor vehicle, and other vital property that you may own. To get the details about what is exempt and non-exempt in Kansas and Missouri, contact Kansas City bankruptcy attorney Ronald L. Jurgeson. He has extensive experience counseling and strategizing with the residents of Missouri and Kansas on ways to keep the property that they hold dear.
Liquidating Non-Exempt Property
Sometimes, however, liquidating non-exempt property may cost more than its worth. Because of this, the trustee may then allow the debtor to keep non-exempt property which only has marginal monetary value, in which case the non-exempt property is “abandoned” and given back to the debtor. Another way non-exempt property is kept is for the trustee to allow the debtor to purchase the items from the estate. Thereby, the debtor pays into the estate money that can then be paid out to creditors.
Call Ronald L. Jurgeson Today
Exemptions vary from state to state, and federal exemptions play a part in what you are allowed to keep as well. If there are items in your life that you wish to maintain, contact Attorney Jurgeson today at 816-554-6968.