Many people carry misconceptions about the bankruptcy process that can deter them from obtaining the relief they need. One of these is the myth about losing all of your assets in your bankruptcy case. While there is some risk to your assets in bankruptcy, there are simple ways to ensure your property is protected.
Keeping What Is Yours
Whether you are worried about losing your home, car, luxury items, wages or even benefit funds, the thought of such risk can be scary. The good news is that the bankruptcy process is designed with you in mind. The goal isn’t to strip you of everything you own, rather to resolve your debts in a way that is fair to your current financial situation.
Bankruptcy exemption laws offer a wide range of protection for most of your assets. There are two ways to exempt your assets in bankruptcy: the federal exemption, or your state’s exemption law. The federal exemption is open to anyone filing for bankruptcy, but does have a cap on many of the asset categories. The state exemption laws in each state vary, some offering a higher cap on the value of goods. Although Ohio isn’t a state with the highest value of asset exemption, it does cover a portion of your home, a motor vehicle, thousands of dollars in personal property, and unlimited protection over crucial funds such as retirement and Social Security.
The most important thing to remember about your assets when filing for bankruptcy is that honesty is key. Attempting to hide, sell or transfer assets can be viewed as fraudulent and leave you facing serious consequences. Always be open about the worth, location and status of your assets when filing your petition. Remember that your Dayton bankruptcy attorney is on your side and will be working to protect as much of your property as possible.