When in doubt consult experts, is a popular saying. It is of extreme importance, especially in the case of bankruptcy. With so many myths surrounding bankruptcy, it is obvious that people who are struggling with debts are bound to be confused. A bankruptcy filer’s assets and debts are their most important concern, say lawyers of Dallas based bankruptcy law firm Recovery Law Group. What happens to both depends on the chapter of bankruptcy chosen by the bankruptcy filer.
Individual debtors have the option of filing under Chapter 7 or Chapter 13 bankruptcy. Both these chapters have a different set of rules regarding debt discharge and asset protection. Federal and state government offer exemptions to protect the personal property of the debtor, for them to get the fresh start they deserve after bankruptcy. Each chapter of bankruptcy has its own set of exemptions and rules. An experienced bankruptcy attorney can help select the chapter which will offer to protect as many assets as possible.
When you file for bankruptcy, everything you own becomes part of the bankruptcy estate. A court-appointed bankruptcy trustee oversees handling the bankruptcy estate. You have a choice between opting for state or federal exemptions to protect your property. Generally, exemptions cover equity in your home, vehicle, personal property, tools of the trade, certain pension accounts, etc. Since each bankruptcy chapter has its own merits, you need to consult a qualified attorney to help select the best option for you. If you need to discuss your case, you can call at 888-297-6023 to schedule an appointment.