Bankruptcy Myths Debunked – Part 3

This is the third part in a series of bankruptcy myths debunked. The first myth we debunked was that everyone will know when you declare bankruptcy. The second myth is that declaring bankruptcy will ruin your credit forever. The third myth we address is that when you declare bankruptcy you will lose everything you own. Perhaps you’ve seen something on TV or in the movies that perpetuates this myth, such as someone sitting on the floor of a nearly empty house while workers haul away everything they own. Fortunately, this is far from the truth.

Exempt property

Chapter 7 bankruptcy is sometimes called “liquidation bankruptcy.” This sounds scary because the term “liquidation bankruptcy” seems to convey that a creditor can sell or liquidate some of your possessions. However, bankruptcy law provides various bankruptcy exemptions, covering most types of property, which allow you to retain that property from seizure or liquidation. In the vast majority of bankruptcy cases, people do not lose anything other than their debts. Examples of exempt property include necessary clothing, motor vehicles, household furniture, jewelry to a certain value, tools of your trade, your pension, welfare income, social security, and unemployment compensation. Other exempt property includes appliances, equity in your home, and monetary damages you received for personal injury.

Protecting your rights and property

Protecting your property is an important reason you need an experienced bankruptcy lawyer. You need an advocate to protect your interests and your property. The Minnesota bankruptcy attorneys at Behm Law Group, LTD are on your side. Not only will we help you get the relief you need, we will help you protect and retain all the property and possessions you are entitled by law to keep.