Protect Your Property
After filing bankruptcy, one may retain any assets that are considered exempt, like their home/estate. In most cases, a debtor will not lose a majority of their personal property. Many important exemptions are in place to protect consumers' rights. Federal law allows for certain exemptions of assets that will not go to a trustee. Following a careful review of a debtor's non-exempt assets, if any, a lot of the time there are no sufficient funds left with which to pay for anything more than administration costs; in that instance, the creditors will receive nothing.
The bankruptcy lawyers of Davis, Kessler & Davis, will be able to help you identify your exempt and non-exempt assets. Federal Law allows exemptions which include workers compensation awards, college funds that have been prepaid, 401K and pension funds, (a portion of) your house/home, Supplemental Security Income (SSI) or disability income, and cars (a portion of, but often they are totally exempt).
Limitations to these exemptions do exist; however, the majority of consumers are able to maintain ownership over all of their belongings while still eliminating their debt. Non-exempt property of the estate is what is used to pay the respective creditors. This can be comforting news to someone in dire need of a break from financial strife!