Bankruptcy Exemptions: Protecting Your Assets in Chapter 7
Bankruptcy Exemptions: Protecting Your Assets in Chapter 7
Filing for bankruptcy can be a difficult and overwhelming process, especially when it comes to protecting your assets. However, with the help of bankruptcy exemptions, you can safeguard certain possessions from being taken away during Chapter 7 proceedings. In this blog post, we will discuss what types of assets are exempt in Chapter 7 bankruptcy and how you can keep your home after filing. If you're a Connecticut resident struggling with debt and considering bankruptcy, read on to learn more about how Grafstein & Arcaro, LLC can assist you with your bankruptcy matters.
When filing for Chapter 7 bankruptcy, assets that do not fall under exemption are sold by the trustee to pay off creditors. However, there are certain assets that are protected under state and federal law. These include:
- Homestead Exemption - If your primary residence is considered a homestead, it may be exempt up to a certain value depending on the state you live in.
- Personal Property Exemption - This includes household goods (furniture, appliances), clothing, jewelry (up to a certain value), tools of trade (up to a certain value), and other personal items.
- Retirement Accounts - Certain retirement accounts such as IRAs and 401(k)s may be exempt up to a certain amount.
- Public Benefits - Public benefits like social security income and unemployment benefits are typically exempt from being taken by creditors.
- Insurance Policies - Life insurance policies may be exempt if they have specific provisions such as naming beneficiaries or providing cash surrender value.
If you're considering filing for Chapter 7 bankruptcy but are worried about losing your home, there's good news - Connecticut has one of the most generous homestead exemptions in the country. Under state law, homeowners can protect their primary residence up to $75,000 in equity ($150,000 for couples). This means that if the equity in your home is less than $75,000, you can keep it after filing for bankruptcy. If it's more than that, you may be required to sell your home and use the proceeds to pay off creditors.
At Grafstein & Arcaro, LLC, we understand how daunting the bankruptcy process can be. That's why we offer our clients personalized attention and expert guidance throughout every step of their case. Our experienced attorneys can help you determine which exemptions you qualify for and ensure that your assets are protected to the fullest extent possible.
Filing for Chapter 7 bankruptcy doesn't have to mean giving up all of your possessions. With the help of bankruptcy exemptions, you can safeguard certain assets from being taken away during proceedings. Connecticut residents can take advantage of generous homestead exemptions to protect their homes and other possessions from creditors. If you're considering filing for bankruptcy, contact Grafstein & Arcaro, LLC today to learn more about how we can assist with your case. Our compassionate attorneys will work tirelessly to help you achieve a fresh financial start.

