Considering a Chapter 7 bankruptcy but worried
about which property you’ll have to sacrifice and which property will be exempt? Or are
you thinking about a Chapter 13 but not sure if you’ll be able to afford the payments
based on which property is exempt or not? Today I’d like to share a little about the
exemption laws and help you understand which property you get to keep out of bankruptcy
and why. Hi, I’m David Candler Hicks of Alliance
Legal Group. We’re a Florida law firm that focuses on helping clients facing bankruptcy.
Many of our clients are interested in pursuing bankruptcy but are afraid of losing certain
key pieces of their property or have concerns that they will not be able to afford a repayment
plan because certain properties may have to be paid off. So, let’s discuss which property
is exempt in bankruptcy and why.Topic Bankruptcy exemptions are an important part
of both Chapter 7 and Chapter 13 bankruptcies. In Chapter 7 bankruptcy, exemptions determine
which properties you get to keep and which you may have to sacrifice so a trustee can
sell it to pay your unsecured creditors. In Chapter 13 bankruptcy, exemptions determine
how much you will have to pay to nonpriority, unsecured creditors through your Chapter 13
plan. There are a number of rules that determine
your potential personal property exemptions in a Florida bankruptcy. For example, Florida
has a vehicle exemption of up to $2,000. If your car is worth less than $2,000, then your
car is exempt. On the other hand, if your car is worth $15,000, and you still owe $10,000,
the trustee could sell the car, pay off your $10,000 car loan, and use the remaining $5,000
to satisfy any unsecured debts. There are also some administrative costs associated
with selling your property, so if it’s not worth significantly more than the exemption
amount, the trustee may not bother trying to sell it. A couple of the most common exemptions
are the home one lives in, or their “homestead” and their daily driving car. Have more questions about exemptions applicable
to your situation? At Alliance Legal Group, we have helped scores of clients find clarity
in the bankruptcy process. We’d be happy to discuss the circumstances of your situation
in a free, no obligation consultation. I’m David Candler Hicks Alliance; have a wonderful
day!