Keeping Your Car And House
Bankruptcy Exemptions Information From Kentucky Lawyer
When you declare bankruptcy under Chapter 7, you pay what you can and discharge the rest of your debts, with a few exceptions.
The courts and your creditors cannot take the “clothes off your back”, however. The bankruptcy laws do not include humiliating you, or preventing you from functioning and working.
The first question most people ask is: Can I keep my house?
The Bankruptcy Code provides dollar amount exemptions for several items, homes being one of them. The current exemption for a home is $21,000. So, if the equity in your home is not more than $21,000, then selling your house wouldn’t gain anything for your creditors. However, in order to keep your home, you must show that your income is sufficient to make the monthly payments.
Exemption amounts are greater for a couple. Contact us for further explanation and the most current information.
Other Bankruptcy Exemptions
A similar calculation is made with respect to your automobile. The current dollar exemption is $3,450. So, unless you could get more than that in profit by selling it, your creditors would gain nothing. Other exemptions include property such as “tools of your trade” to allow you to make a living, and insurance policies, so that you are not left destitute should further misfortune befall you.
The law has a soft side showing humanity toward unfortunate people. We will explain your options in bankruptcy and what life will be like afterward — it will be better!
Marcus H. Herbert & Associates has more than three decades of combined experience helping people like you. We will inform you as to what property and other items you may be able to keep. We will guide you through the process, not just tell you to fill out a form.
Put more than 20 years of bankruptcy filings to work for you. For a free consultation with a debt relief lawyer, contact the law office of Marcus H. Herbert & Associates in Paducah, Kentucky.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.