Working with a Chapter 7 Attorney to Save Your Assets

A Chapter 7 attorney is one of the best resources you have if you are considering filing for bankruptcy. The decision to do so is a serious and life changing one. One of the biggest issues individuals need to consider is protection of assets. Assets include things like your car, electronic equipment, a home and other high-valued items you may own. Under bankruptcy laws, you may lose some of these items if you do not take the proper steps to protect them. Your lawyer can help provide advice of your rights.

Why Will You Lose Assets?

In this form of bankruptcy, all assets go through the liquidation process by the trustee working for the government. The process eliminates any excessive assets you own in order to use those funds to repay any creditors possible. Liquidation is a requirement of this process. It is the only way that creditors (those that you owe money to) can recoup some of the money given to you. It is never a good idea to try to hide items of value. You should not give these to family members either. These violations of the law could lead to a dismissal of your case.

Can You Protect Yourself?

With the aid of a Chapter 7 attorney, you can protect many of your assets. To do so, you will need to consider a few things.

• Is there an exemption that protects the item? Each state has a list of exemptions, or types and values of property types you can maintain. For example, if you own two vehicles, your state may have an exemption for one vehicle - therefore protecting it from liquidation.

• Is there any value to the item if resold? In some cases, if reselling the item would not result in a profit to be given to the creditors, the trustee will not sell the item. For example, if you own a computer that is no longer worth much, it makes no sense to take those items from you.

• Is the item necessary for you to start a financially sound future? Things like tools of the trade can receive protection if you can show that you need them in order to start a financially sound future. The goal of bankruptcy is to give you a fresh start.

Working with a Chapter 7 attorney is the best way to protect your assets as he or she can offer specific steps to ensure the protection of the items you own. Keep in mind that every situation is very different. You may be able to keep more or less depending on your individual circumstances and the types of items you own. Your state's laws also play a role in this process.