Touch Me Not: The Things You Get To Keep After Bankruptcy

A lot of people like to save up and go to Las Vegas to have an excellent time. From the girls, casinos, slot machines, and magic shows, everything in Vegas is fun. As with having a good time, there are a lot of risks involved. What if the “Luck of the Irish” isn’t with people who go there? The easy answer is to stop. For those who live in Las Vegas, however, it’s a different story.

Believe it or not, a lot of people in the past got bankrupt in Las Vegas. It doesn’t change the fact that people can get bankrupt today just as easily. People often ask, “What do I get to keep after bankruptcy?” Here are some things that you can keep.

Homestead Exemption

A person can be allowed to keep their houses in the homestead exemption clause of the Chapter 7 bankruptcy. However, the allowable value of property to be kept varies from state to state.

Vehicle Exemption

This clause is another exemption that people can opt for in case of bankruptcy. $3000 is the standard equity value on cars for most states. To know the equity value of a vehicle, deduct the market value of the car to the total amount owed.

Other qualified exemptions

Jewelry, appliances, phones and other personal belongings are some of the things that banks and other entities cannot take away from borrowers. Insurance plans and other benefits will also not be lost after filing for Chapter 7 bankruptcy. Additionally, any instrument that a person uses in his profession is off limits. For example, a trumpet owned by a musician cannot lose ownership of that item.

Takeaway

Although the Chapter 7 bankruptcy is considered as the end of all things for almost all people, they fail to realize that certain essential items such as the very house they live in, will not be for seizure. Personal belongings such as phones and jewelry are won’t also be taken. In the end, it matters what people know about the things they get to keep.

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