When a person is thinking about filing for bankruptcy, they often have concerns because of all of the misconceptions that float around about this topic. One of the biggest concerns that people cite is that they will lose their possessions in a bankruptcy. Bankruptcy can be a great tool for individuals who are struggling to pay back debts that they have. Like any other major legal or financial matter, it is important for an individual to collect all of the facts before making assumptions that can ultimately harm someone.
In Chapter 7 bankruptcy, an individual may have to get rid of some of their possessions in order to pay off some of their debts. However, it is important to be aware that anyone who files Chapter 7 is permitted a $10,000 exemption for goods that are exempt from repossession. In addition to the $10,000 exemption, individuals are permitted to keep wedding rings, life insurance policies, televisions, and cars of low value. In addition, most small possessions aren’t worth enough money to even be included.
For Chapter 13 bankruptcy, the debtor will be repaying debt over the course of 3 or 5 years and often does not have to lose any possessions.
If you have questions about bankruptcy in New Jersey, contact us today.
Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.