This is the million dollar question that plagues everyone that is filing bankruptcy. Most people are pretty attached to their personal property and have trouble giving anything up. That's why it's common for a bankruptcy attorney to hear this as the first question, Will I lose my stuff when filing bankruptcy? A good bankruptcy attorney knows this question seems pretty silly as it was buying all this stuff that put the person in the financial trouble anyways. Not to fret though, the answer is no.
When Congress created bankruptcy, they wanted to truly give a person a fresh start. If the bankruptcy court hauled off all of one's property, it would be pretty hard for that person to have a fresh start with nothing to get started with. That's why the bankruptcy exemption laws were born and added to the bankruptcy code. If the person filing bankruptcy lost all their tools and their automobile, they wouldn't be able to work and would never be able to recover from the bankruptcy filing. The bankruptcy exemption laws were enacted to give an individual a generous amount of property to allow them to get back on their feet. There is even a wild-card exemption that is usually used for personal property like jewelry.
Another thing that can cause a dismissal of a bankruptcy filing is not submitting all the documentation that the bankruptcy trustee will ask for. When necessary the trustee will ask the individual filing at the meeting of the creditors were 341 meeting to submit additional information. Sometimes, a bankruptcy trustee will ask for additional documentation or proof of someone's employment or maybe property. If the person fails to submit it, they will have a deficiency notice sent out for their bankruptcy filing that gives the individual a certain timeframe to reply with the documentation needed. If the person doesn't send this in, their bankruptcy will be dismissed. That's why the bankruptcy attorney will usually tell their client to make sure and open everything the bankruptcy court might send them.
Everyone's situation is different, but in some cases individuals with a large amount of unsecured debt that filing bankruptcy might be able to afford to keep their car and their home. Eliminating all the credit card debt and personal loans will sometimes allow an individual to just squeak by and be able to make their house payment. Where the big problem will lie is if the individual got months behind on their payment and has no way of coming up with a lump sum to catch up. Once again this is a good reason to hire a bankruptcy attorney to navigate the complexity of the bankruptcy code. Prior to 2005, it was easy for people to file a pro se or do-it-yourself bankruptcy. During this time frame, Congress felt there were too many abusing the bankruptcy system and made changes to the code. In the big scheme of things, a bankruptcy attorney well worth their fees when considering the amount of debt that will be wiped out in the bankruptcy discharge.
The author started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.
When Congress created bankruptcy, they wanted to truly give a person a fresh start. If the bankruptcy court hauled off all of one's property, it would be pretty hard for that person to have a fresh start with nothing to get started with. That's why the bankruptcy exemption laws were born and added to the bankruptcy code. If the person filing bankruptcy lost all their tools and their automobile, they wouldn't be able to work and would never be able to recover from the bankruptcy filing. The bankruptcy exemption laws were enacted to give an individual a generous amount of property to allow them to get back on their feet. There is even a wild-card exemption that is usually used for personal property like jewelry.
Another thing that can cause a dismissal of a bankruptcy filing is not submitting all the documentation that the bankruptcy trustee will ask for. When necessary the trustee will ask the individual filing at the meeting of the creditors were 341 meeting to submit additional information. Sometimes, a bankruptcy trustee will ask for additional documentation or proof of someone's employment or maybe property. If the person fails to submit it, they will have a deficiency notice sent out for their bankruptcy filing that gives the individual a certain timeframe to reply with the documentation needed. If the person doesn't send this in, their bankruptcy will be dismissed. That's why the bankruptcy attorney will usually tell their client to make sure and open everything the bankruptcy court might send them.
Everyone's situation is different, but in some cases individuals with a large amount of unsecured debt that filing bankruptcy might be able to afford to keep their car and their home. Eliminating all the credit card debt and personal loans will sometimes allow an individual to just squeak by and be able to make their house payment. Where the big problem will lie is if the individual got months behind on their payment and has no way of coming up with a lump sum to catch up. Once again this is a good reason to hire a bankruptcy attorney to navigate the complexity of the bankruptcy code. Prior to 2005, it was easy for people to file a pro se or do-it-yourself bankruptcy. During this time frame, Congress felt there were too many abusing the bankruptcy system and made changes to the code. In the big scheme of things, a bankruptcy attorney well worth their fees when considering the amount of debt that will be wiped out in the bankruptcy discharge.
The author started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.
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