Owing overwhelming amounts of debt can make life unbearable, but many debtors refrain from declaring bankruptcy out of fears that they will have to give up everything they own in the process. The fact is that most bankruptcy petitioners are eligible to preserve most or all of their personal assets, provided that they know how to take full advantage of state and federal exemptions.
If you owe more than you can realistically ever pay back, you know what a tremendous burden debt can be. A large portion of your income is devoured every month by loan payments, leaving you little or nothing to pay for your daily expenses, let alone being able to afford the things you want for yourself and your family. It can easily seem like there is no way out-either you struggle on trying to keep up with the monthly payments, or you risk defaulting and losing your assets to repossession. Perhaps you have considered declaring bankruptcy, but like many people you may have heard that you would be forced to liquidate your personal estate in the process.
The fact is that you may be able to file for bankruptcy without losing anything at all, which would provide you the opportunity of discharging all or most of your debts and of making a fresh start in life. It is true that somekeyword does involve liquidation, but this may not apply in your case. During the process of filing, the court will assign a bankruptcy trustee to oversee your case, and one of the functions of the trustee is to review your estate in order to determine what-if anything-can be sold off. The proceeds of such sales would be used to pay the outstanding balance on your debts and satisfy the demands of your creditors. Liquidation could theoretically leave a bankruptcy petitioner with nothing at the end of the process, but this does not have to be the case.
United States Bankruptcy Code includes an extensive list of exemptions which you can claim to shield your estate from liquidation-anything you own which qualifies will be legally protected from the actions of the trustee. State law may additionally provide similar exemptions which you may be able to apply. Common examples of items which may be exempted include equity in your home, tools which you use in your profession, certain amounts of jewelry, furniture, life insurance policies and similar items.
The rumors you may have heard of debtors losing their cherished personal possessions in the process of declaring bankruptcy may not be true in every case, but they do have a basis in fact-unless you are prepared to take full advantage of the available exemptions your personal estate is at risk of liquidation. For this reason it is in your best interests to work with an attorney who has an exhaustive knowledge of state and federal bankruptcy law and who can guide you towards the best possible result. By retaining legal representation at the outset of the case, you will stand a far better chance of reaching the final discharge of debt in the best possible position.
Serving clients in Houston and throughout South Texas, somekeyword provides experienced legal counsel and dedicated representation for individuals seeking debt relief through bankruptcy and a number of other approaches. With a 14-year track record of successfully assisting individuals and families in your position, the team at the firm is prepared to assist you with even the most challenging case. If you have decided that it is time to take decisive action towards making a fresh start financially, you are invited to contact the firm for an initial consultation to explore your options and begin working on a strategy for getting you out of debt.
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