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Filing for bankruptcy is a tough decision for people. This is like admitting that they have been unable to manage their finances in a responsible way. However, once you have run out of options to get rid of your debts, filing for bankruptcy might be ideal. Individual debtors can choose from Chapter 7 or Chapter 13 bankruptcy, though most prefer the former over latter. It is important to remember that while getting rid of debts, you might end up losing some of your assets when you file for Chapter 7 bankruptcy. As per lawyers of Los Angeles based law firm Recovery Law Group, the government has provided exemptions which can help people protect their assets during bankruptcy proceedings.
Bankruptcy is a way to allow people to start their lives with a clean slate. This can happen if they are able to retain essentials for living like a home, a vehicle, household furnishings, etc. Both state and federal government offer exemptions, though, it will be foolish to assume that you will be able to save all your assets when you file for bankruptcy. Compared to Chapter 13 bankruptcy, Chapter 7 offers lesser flexibility and lower exemption.
Bankruptcy filers can choose between federal and state exemptions to protect the equity in their property. The bankruptcy attorney can guide you as to which would be most beneficial for you. If, however, you intend to file for Chapter 7 bankruptcy and are able to qualify for it, it is important that you are aware of the amount of equity you have in your home as well as the amount of equity exempted as per your chosen set of exemptions. Though growing equity in the house is great; but, if you wish to retain your house, having low equity on your home would is an asset.
The legal language might be complex for ordinary people and therefore it is important for you to hire experienced bankruptcy lawyers for your case. While considering bankruptcy, it is vital that you are aware of the specific requirements of the state and the chapter of bankruptcy you are filing under. Filing for bankruptcy without understanding the complications can drag you into problems worse than you are already facing. To consult with bankruptcy lawyers, you can call 888-297-6023 and schedule an appointment.