If you are considering filing for bankruptcy to relieve your insurmountable debt, you have undoubtedly heard the horror stories. Your well-meaning friends and family members may have misinformed you that you will lose everything in a bankruptcy. You and other Ohio residents may find some peace of mind after learning about exempt and non-exempt property in a bankruptcy.
As FindLaw explains, the bankruptcy trustee will use non-exempt assets to repay creditors during a personal bankruptcy. What exactly they liquidate for this purpose depends on what you have. First, you should understand that exempt property – that which you are allowed to keep – includes items deemed necessary for modern life and for remaining employed. This can include your car, clothing, household goods, furniture, tools of your trade and appliances. Funds you receive from public benefits, pensions and personal injury damages may also be exempt.
Non-exempt property, on the other hand, may include the following:
- Family heirlooms, jewelry, collections and other items over a certain value
- Stocks, bonds and investments
- A second vehicle and recreational vehicles
- A vacation home or second home
It can be concerning to consider what you may lose when you file for bankruptcy. However, you may find that you can keep most, if not all, of your possessions, depending on your financial state and what you own when you file. It is important to speak with a professional who has experience in bankruptcy matters to dispel the myths and wrong information you may have heard. Therefore, this blog should not replace the advice of a lawyer.
