When considering bankruptcy, your first concern may be for assets you fear losing. Each bankruptcy is unique. Liquidation may not be required, and even if necessary, a bankruptcy law attorney can help maximize your exemptions to keep your assets.
What you can keep
Chapter 7 bankruptcy is likely to result in the liquidation of some nonexempt assets. But Chapter 13 bankruptcy and Chapter 11 bankruptcy are both considered reorganization efforts with repayment plans. With these two bankruptcies, liquidation may be avoided.
- The value of your home
- The value of your automobile
- Appliances, furniture, clothing and other household goods
- Social security deposits, and up to 75% of gross household wages
- Home improvement materials
- Jewelry, heirlooms and art
- Payments from personal injury or wrongful death suits
- Health and unemployment benefits
- Life insurance proceeds
- Business and professional licenses
- Property of your business partnership
- Tools of your trade
- Pensions and other retirement benefits
- Workers’ comp and union benefits
- Veterans benefits
There are more exemptions than those listed here.