Protecting Your Assets in Chapter 7 Bankruptcy

Even though filing for bankruptcy can be the best option for financially struggling individuals, many people are worried about the property they may lose under Chapter 7. Fortunately, both state and federal laws protect certain assets when filing for bankruptcy. This is to ensure that you have enough left to start again once the process is complete.

Protecting your assets in a Chapter 7 bankruptcy is not always easy, however. It requires a clear understanding of your rights and solid legal representation. To learn how an experienced Arizona Chapter 7 bankruptcy lawyer can help you, call the Harmon Law Office, LLC at 480-829-0494.

Exempt Assets Under Chapter 7

Some assets are exempt under state and federal law, meaning you may not have to sell them even if you do file for an Arizona Chapter 7 bankruptcy. In fact, Arizona’s state laws allow more exemptions than the federal guidelines. Depending on the details of your case, you may be able to keep:

• Your house or apartment, up to $150,000 in value. Vacation homes are generally not exempt, and if you have more than $150,000 of equity in your home, you may have to use the difference to repay some of your debts.
• Your vehicle, if it is determined to be worth less than $5,000. Married couples can apply this amount to two different cars.
• Furniture and household items, up to $4,000 in total value. This exemption generally applies to goods that are worth enough to be valuable to your creditors. You probably do not have to worry about reporting every little trinket in your home to your trustee.
• Any items, tools, or other assets you need to perform your work duties.
• Benefits such as insurance payments, Social Security benefits, and workers’ compensation.

This is just a basic outline; there are other assets that can be exempt in most circumstances. Our Arizona Chapter 7 property exemption lawyers can provide further information about what to expect when filing for bankruptcy and information on what items you may be able to keep.

Contact Us

The Harmon Law Office, LLC is committed to helping families and businesses through the trials of filing for bankruptcy. To schedule a consultation with one of our Arizona Chapter 7 bankruptcy attorneys, contact us at 480-829-0494.