Monroe, Louisiana, Using Bankruptcy Exemptions to Keep One’s Property

Once a person files for bankruptcy, they will have to give up certain parts of their property, so they have a chance of balancing their financial situation again. However, the good news is that they will not necessarily have to lose all their property, and they can use bankruptcy exemptions to protect some of their assets, A bankruptcy attorney who specializes in dealing with such matters will do everything in their power to help a person make the claims they need and to file the required paperwork so they are taken seriously and so they can keep the property that is important to them.

When a person files for bankruptcy, they relinquish the ownership they have of their property to the court, and it becomes a part of the estate. The individual who is responsible for finding the funds to pay the bills is called the bankruptcy trustee, and they will hold the property on behalf of all the creditors. According to bankruptcy law, a person is allowed to exempt the things they need to maintain their home and job. This includes a regular vehicle that is not very expensive, furniture, and basic clothing. A person can gain a better understanding of what they are actually allowed to keep by looking at the exemption statutes of their state.

A person will have to list all the property they own, and this includes real estate, vehicles, personal household items, financial assets, and any other assets they may own. The exemptions will most likely be placed on homesteads, small vehicles, clothing, household goods, tools of the trade. And most retirement accounts.

What happens to nonexempt property in Monroe, Louisiana?

Nonexempt property in Louisiana will be dealt with based on the type of bankruptcy a person has filed for. If they filed a Chapter 7 bankruptcy, the trustee will sell the property and distribute it to the creditors. However, a person may be allowed to buy back some of the items if they have the money. For a chapter 13 bankruptcy, a person will get to keep all their property, but they will have to pay back the creditors an amount equal to the nonexempt property within 3-5 years.

Making the decision to file for bankruptcy is not an easy one and a person should get all the advice they can before they go ahead and make this move. Reach out to a bankruptcy attorney at the Law Office of Campbell, House, and Company today to learn more about the bankruptcy process and to get help filing for bankruptcy and getting the required exemptions.

Reach them at:

1815 Roselawn Ave

Monroe, LA 71201

(318) 855-0285