Your bankruptcy exemptions detail the property that you get to keep when you file for Chapter 7 bankruptcy. These are the personal possessions and other property that won't be subject to liquidation when it's time to sell your property for the purposes of paying back debts. Fortunately, many bankruptcy filers are surprised by just how much of their favorite property they get to maintain through the following bankruptcy exemptions:
Your homestead exemption: This exemption allows you to keep some of the value of your home. In some cases, filers can keep all of the equity they've built up in their primary residence through the homestead exemption, but there will be specific value limitation to this exemption.
Vehicle exemptions: You might not need to liquidate your car, as it's more than likely a necessary part of your life and your ability to get from A to B around town.
Personal property: Personal items like clothing, furniture, appliances, jewelry and a lot more will likely be exempt from liquidation. Nevertheless, certain value limitations will apply to this property.
Professional items: Possessions that you need to carry out your job will also probably be on the exemption list.
Wildcard exemptions: This is the catch-all category for your property that doesn't neatly fit into an exemption box, but you and your legal counsel can make a viable argument for why you shouldn't have to sell it.
When navigating your Chapter 7 proceedings, one of the most important roles fulfilled by your lawyer involves the process of getting as much of your property exempt as possible. Often the clients at our firm who pursue Chapter 7 are happy when they discover just how much of their property they don't need to let go of.