If you’re dealing with overwhelming debt and have found your way to our website, you’re probably thinking about pursing personal bankruptcy. But if you’re like a lot of people, you’re probably also concerned about what the process entails. After all, most people don’t fully understand the bankruptcy process and what it can do for them. This results in people incorrectly thinking that while bankruptcy may free them of their debt obligations; it’ll also leave them without the financial resources they need to get by once all is said and done.
But you don’t have to be worried about being left penniless by the bankruptcy process. This is because you can take advantage of the law by utilizing bankruptcy exemptions to their fullest extent.
What bankruptcy exemptions are available to you?
The good news is that you can retain a significant portion of your property even after you successfully discharge your debts through bankruptcy. In fact, the following exemptions may apply in your case:
- Homestead exemption: The homestead exemption allows you to retain up to about $25,000 in equity that you have built up in your home. This can allow you to secure new housing even after your bankruptcy is finalized.
- Trade items: If you work in a trade and have tools and other equipment to help you perform your job, you can keep several thousands of dollars’ worth of those materials. This can even include things like uniforms, books and appliances that you use at work.
- Household goods: You also have the ability to keep up to $1,000 in furniture and household goods. This could include anything from clothing to bedroom sets and even stereo and television equipment.
- Qualified retirement plans: If you have retirement accounts like IRAs or state pension accounts, you can exempt those from the bankruptcy process. This helps ensure that you’re not behind the eight ball when it comes to your long-term savings.
- Wildcard exemption: Maryland law also allows you to use what’s known as a wildcard exemption. This exemption allows you to remove any assets up to $6,000 in value from the bankruptcy process. Again, this is a great way to ensure that you have some financial stability once the bankruptcy process fully plays out.
There are other assets that can’t be touched during the bankruptcy process. For example, any child support payments that you receive can’t be touched, and most of any spousal support that’s paid to you is likely to be exempted. You can also protect your interest in any trusts whose property is untouchable by creditors, and health aids that are recommended by medical professionals are exempted without limit.
Are you ready to address your bankruptcy exemptions?
As you can see, there are a lot of ways to go about protecting your financial interests when pursuing bankruptcy. If you’re interested in pursuing the process further, you need to be diligent in learning how the exemptions apply to you and using them in a strategic fashion.
That’s easier said than done, of course, which is why many individuals who want to seek out bankruptcy protections do so with the assistance of a skilled legal professional. With that kind of help, you might be better positioned to more fully protect your interests.
So, if you want to learn more about the bankruptcy process, what it entails and what it can do for you, now may the best time for you to speak with an experienced bankruptcy attorney to more fully discuss the process and your options.