When you hire an attorney to file for bankruptcy, your attorney will also file exemptions to reach the maximum asset protection allowable under the law. Bankruptcy provides certain protections for specific assets, like your home and your car, so that you won’t lose the most essential things that you need to function in society. However, every state has its own set of exemptions, and what you can claim depends on how your Chapter 7 bankruptcy attorneys handle exemptions for maximum asset protection.
Why Your Attorney Matters When It Comes to Exemptions
Your lawyer plays an important role in filing exemptions during Chapter 7 bankruptcy, All exemptions must be filed at the start of the process. Your attorney not only has to know what to file but also has to be thorough enough to claim everything that you need. Otherwise, protecting assets in bankruptcy becomes a challenging part of the process.
The most effective way to ensure that you get maximum asset protection is to work with an attorney in your state who has the experience and expertise to file the right claims. Kain + Henehan is a good example of this, as we have decades of experience leading Chapter 7 bankruptcy proceedings.
General Exemptions for Chapter 7 Bankruptcy
While there are differences in bankruptcy protections at the state and federal levels, there are enough similarities to show a general list of exemptions. These include:
- Some amount of home equity
- Some amount of car value
- Family heirlooms
- Clothing
- Some amount of household items
- Trade tools and resources
- Benefits (public, insurance, veteran, child support, etc.)
- Retirement accounts
Each category can claim items up to a certain value, as well as fit other requirements. For example, your primary vehicle is protected, but only if it is under a certain value and not used for work. An expensive sports car or a truck used to haul construction materials may not be protected, but a modest car that you drive to work every day should be.
All Claims Must Be Made Up Front
In bankruptcy cases, you must file all claims and asset declarations up front. You cannot wait until the process is underway to declare accounts or additional assets as exemptions. If you do not file them appropriately, then you lose the exemption protections entirely.
This is why it is so important to work with a lawyer who knows what they are doing. They need to be thorough and precise with the exemption claims. Otherwise, you risk losing things that you could have protected during the process.
Call Kain + Henehan For Bankruptcy Help
If you are unsure of your ability to manage a bankruptcy filing on your own, then start by contacting a lawyer. There is no reason why you shouldn’t get legal help to secure maximum asset protection and leave the bankruptcy process with many of your assets intact. Call Kain + Henehan, bankruptcy attorneys in St. Cloud, Minnesota, at (612) 438-8006 or use the contact form to schedule a consultation about your case.
