Smart Purchases to Make Before a Chapter 13 Filing
If you're facing wage garnishment, repossession, or overwhelming debt, Chapter 13 bankruptcy can help you find some relief. But you may hesitate before filing, worrying that you'll lose some of your most prized possessions. The good news is that Chapter 13 allows you to keep certain property, although the type of property differs from one state to another. By being aware of property exemptions in your state, you can understand just what you'll be able to keep.
The Craig Black Law Firm understands the concerns consumers have about asset seizure in Chapter 13. If you're considering filing for bankruptcy, I can help. When you call my office at 678-888-1778, you'll speak to me personally. You can also get in touch with me via this contact form, and I'll reach out to you.
Exempt Assets in Chapter 13
Asset seizure is part of the deal when you file for Chapter 13. Courts will take certain items to help pay back creditors. However, each state has a list of assets that are exempt from seizure. It's important to look at your state to find out exactly what will be exempt, but here are some items that are typically included:
- Clothing and household items
- One vehicle (up to a certain value)
- Home equity (with limits)
- Tools of your trade
- Retirement accounts and pensions
- Necessary medical supplies
- Wedding rings
Bankruptcy courts understand that filers need to be able to live and work after filing, and these exemptions are designed to help you do that. If you're in a tough financial spot, Chapter 13 can give you some breathing room while still letting you keep some essentials.
Smart Purchases Before Filing
It's important to be cautious with your spending in the months leading up to filing. Otherwise, you may be accused of trying to hide assets. Here are some things you can legally buy with any extra money you have on hand:
- Used but reliable vehicle: If your current car might be repossessed or has questionable reliability, a reasonably priced used car could get you through the next few years.
- Essential household items: You can purchase a few household essentials, including appliances. Just don't go overboard.
- Tools for work: Are you self-employed or a business owner? Tools or equipment you need to make a living are usually exempt.
Your Partner in Chapter 13
The Craig Black Law Firm takes a personal approach to every client relationship, working with you to address any concerns you have. When you call our offices, you don't have to deal with being passed from employee to employee. I'll listen to your concerns, explain your rights, and help you understand the Chapter 13 process.
Whether you're facing foreclosure, garnishment, repossession, or you just can't keep up anymore, Chapter 13 could offer some relief. Contact me at 678-888-1778 or complete this contact form to get in touch.