Will I Lose Everything I Own?
One of the biggest misconceptions about bankruptcy is that debtors lose everything they own to repay their creditors. Nothing could be further from the truth. The Bankruptcy Code was not primarily designed to help your creditors collect debts. It was designed to help you make a fresh start without the burden of unmanageable debt holding you back.
At Advanced Bankruptcy Legal Services of Connecticut, our practice is dedicated to helping people in Hartford County and throughout Connecticut obtain the debt relief that they need so they can get back on the right financial path and move on with their lives.
Creditors do a very good job of making people who struggle with excessive debt believe that nothing good can come from bankruptcy, but nothing could be further from the truth. Get honest answers from lawyers whose only goal is to help you get the bright future you deserve.
Understanding Property Exemptions In Bankruptcy
In the course of a Chapter 7 bankruptcy, your trustee has the right to sell certain assets to raise money to repay your creditors. Many of our clients ask, “Will I lose everything I own?” No, you won’t.
The law allows you to keep certain property that is deemed essential to your ability to live a normal life. This is referred to as “exempt property.” Exempt property is protected under federal and state laws and cannot be sold by the trustee to repay your creditors.
Exemptions can protect entire categories of property as well as property that is worth a particular amount of money. We will help you understand the categories of property and the dollar amounts that can be protected.
Depending on the circumstances of your case and your goals, we can help you determine whether filing under Connecticut or federal property exemptions would be most beneficial in your case.
Exemptions In Connecticut
Both the state and federal bankruptcy codes provide allowances for the following types of property:
- Homestead, whether real property or mobile homes
- Household furnishings, including appliances and furniture
- Tools, equipment and materials necessary to do your job
- Public benefit payments, including the Earned Income Credit and Child Tax Credit
- Qualified retirement accounts and the right to receive future retirement benefits
- Recovery from personal injury lawsuits
- Life insurance death benefits and accrued cash values
- Workers’ compensation benefits
- Social Security benefits
- Medically prescribed health aids
- Recovery of loss of future earning capacity from personal injury claims
- Firearms if one is a member of law enforcement or in active military duty
- Extra small amounts of cash on hand
Speak To An Experienced Bankruptcy Law Attorney
Contact our office to discuss your questions regarding exempt property in bankruptcy. We offer a free initial consultation to all new clients. Call our New Britain office at 860-674-8003 or our Bloomfield office at 860-242-0574 or make an appointment via email.