Protecting your property during bankruptcy is possible. It can be rather frightening knowing that your creditors can make claims against financial assets and personal property when you file for bankruptcy. Things get even more complicated when a divorce case is involved simultaneously.
Your bankruptcy attorney will use “exemptions” to protect as much of your assets as possible. In Minnesota, debtors are given the choice of using either the exemptions provided under Minnesota law or those available under federal law. Your attorney will help you decide which set of exemptions will work best for you. These exemptions allow debtors to enjoy the benefits of bankruptcy while still maintaining their quality of life.
Items that are not exempt through Minnesota or federal exemptions can be seized by the bankruptcy trustee assigned to your case and liquidated in order to satisfy all or part of the debt. Nonetheless, most individuals don’t lose anything it all. It does, however, depend upon what you own and how much that property is worth. Certain types of personal property are exempt up to a certain dollar amount, which means it will be protected from being seized by the court-appointed trustee.
Items that are protected through exemptions cannot be touched by creditors. This means you won’t lose everything you own to bankruptcy. An experienced bankruptcy attorney can review both state and federal exemptions to see which will work best for your situation, so that you can keep as many of your assets as possible. There is no doubt that the impact bankruptcy has on your life is significant, so it is important to meet with one of our attorneys to discuss your options and the bankruptcy process. This will ensure that you are prepared to take advantage of this opportunity to eliminate a great deal of the stress caused by debt.