What is a Chapter 7 Bankruptcy anyway? Will I lose everything I own if I file bankruptcy? Will the bankruptcy law firms in my area treat me with the dignity I deserve? When you are suffering from debt, many things cross your mind. One of them is will I lose all my assets if I file Chapter 7 Bankruptcy? Chapter 7 Bankruptcy is referred to as a “fresh start” or “liquidation” bankruptcy where the focus is on the assets you own, wherever situated in the world, on the date you file bankruptcy.
The vast majority of Eagan, MN residents lose no assets when they file Chapter 7 Bankruptcy. In other words, their assets are all “exempt” or protected from creditors. In other words, you get to keep them, own them, and sell them and keep the money from them. Now, to be clear, some Eagan residents will have what we refer to as “non-exempt” assets. Non-exempt assets are assets you own that if you file bankruptcy, become an asset and owned by the bankruptcy estate. Chapter 7 trustees don’t want to take control of assets. They love to make deals with debtors to retain non-exempt assets. However, they are charged with “liquidating” or selling these assets for as much as they can get and using those proceeds to pay down your debt. Whatever debt remains unpaid, gets wiped out, tax free forever.
For example, suppose you have 5k in non-exempt assets and you have 100k in debt. Is it a good deal to pay a trustee 5k in exchange for wiping out 100K, tax free? Of course! We all need to keep some perspective about this process.
As for a bankruptcy law firm that treats you with dignity, that is the specialty of LifeBack Law Firm. We excel at treating our clients with kindness, helpfulness, professionalism, and exceptional customer service. We excel at promoting human dignity when you are not feeling dignified.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
When the time is right, or when you are ready to get your life back, reach out to the Eagan, MN bankruptcy law firm that excels at promoting human dignity by going now to www.lifebacklaw.com. You will be so thankful you did.
