Ellicott City, MD Bankruptcy Exemptions Lawyers

Hands-On Bankruptcy Attorneys Protecting Your Assets From Liquidation in Ellicott City, Maryland

A Chapter 7 bankruptcy may require the liquidation of certain assets. The bankruptcy trustee may seize certain assets and use them to repay some of the debts owed to your creditors. However, liquidation is intended to use your assets to pay back as much of your debt as possible, not to strip you of everything you own. If you are considering Chapter 7 bankruptcy, but the fear of liquidation is stopping you, you should know that a lot of personal property and even some financial assets are shielded from liquidation.

Liquidating absolutely everything you own would create significant problems that could make it difficult for you to receive the fresh start you need. If most or all of the items you truly need were liquidated, you would probably need to buy replacements promptly. This would lead to further financial stress rather than debt relief, and it could even lead to a new cycle of debt. Exempt assets include items you need for work, retirement savings, and some of the equity in your home. These exemptions are meant to make sure you will not be placed in a difficult position when the bankruptcy proceedings are over.

Law Offices of Marc A. Ominsky, LLC has helped countless people through Chapter 7 bankruptcy during our more than 50 years of combined legal experience. Our hands-on Ellicott City, MD bankruptcy attorneys can advise you in real time when you reach out to us. We are dedicated to helping people who are drowning in insurmountable debt gain financial freedom through bankruptcy. If Chapter 7 is the best choice for you, we will help you take an accounting of your assets so that we can preserve as much of your property as possible. Our goal is to put you in the best position possible to stay out of debt and reach your personal financial goals in the future.

Exempt Assets in Chapter 7 Bankruptcy

When you file for Chapter 7 bankruptcy, you will have some flexibility regarding the specific assets that will be exempt from liquidation. Some categories of exempt assets include:

• Tools of Your Trade: You can exempt up to $5,000 worth of property you need for work. This might include tools, a laptop, or a work uniform.
• Household Goods: Up to $1,000 worth of the items you use in your home are protected. This might include furniture, appliances, or personal belongings.
• Wildcard Exemption: With this exemption, you can exclude up to $5,000 worth of any personal property you choose. You may use this to preserve more of your household goods, a vehicle, hobby equipment, or anything else you desire.
• Support Ordered by a Family Law Court: Child support payments you receive are for your child alone and are excluded from bankruptcy proceedings. A percentage of alimony payments you receive may also be excluded.
• Public Benefits: If you are receiving public assistance, you probably need that income to maintain a minimal standard of living. Forms of assistance like Social Security benefits or food stamps are protected.
• Medical Equipment: Healthcare equipment your doctor has prescribed for you will not be liquidated. Durable medical equipment like a wheelchair, CPAP machine, or other adaptive equipment can be critical for allowing you to function in your daily life.
• Home Equity: Up to $31,575 of equity in your home is exempt from liquidation under the homestead exemption. This includes your security deposit if you are renting. If you are trying to avoid foreclosure through bankruptcy, Chapter 13 may be a better choice for you. Your attorney can help you understand how bankruptcy will affect you as a homeowner.
• Personal Injury Compensation: The money you are awarded in a personal injury lawsuit is meant to restore you to the position you were in before you were injured. These funds are not liquidated during bankruptcy.
• Retirement Savings: Qualified retirement savings accounts are protected from liquidation. If you were to lose your retirement savings, you would likely have to depend on government benefits during your retirement. Preserving retirement savings during bankruptcy can help prevent this outcome.

Contact Our Ellicott City Bankruptcy Exemptions Attorneys

Law Offices of Marc A. Ominsky, LLC will do all we can to preserve as much of your property as possible during a Chapter 7 bankruptcy. We understand how stressful going through this process can be, and we will strive to ensure that you can keep what you need most. Contact us at 443-539-8712 for a complimentary consultation.