Jump To Navigation

Will I lose everything if I file for Chapter 7 bankruptcy?

Filing for Chapter 7 bankruptcy is potentially a great option for those with little to no income and a high amount of debt. While you may not have any assets in your bank account, you may have a significant amount of assets in the property that you own, from your house and car to your technology and jewelry.

Chapter 7 bankruptcy involves the liquidation of assets. Therefore, you will have to part with a significant amount of your possessions when you are filing. Many people worry that this will mean that they will lose everything. However, the bankruptcy exemptions ensure that you will be able to keep essential possessions. The following are the exemptions that apply in Chapter 7 bankruptcy filings.

Exemptions in Chapter 7 bankruptcies

Chapter 7 bankruptcy exemptions differ between states. In Washington, it's possible to benefit from double exemptions when you file for bankruptcy along with your spouse.

Homestead exemptions in Washington

An individual debtor will be able to protect up to $125,000 of equity in their primary residence. This could be their home, whether it is a house or a mobile home.

Motor vehicle exemptions

Cars are essential for getting to work, so they help a person to earn money. A debtor can exempt up to $3,250 for the ownership of one vehicle.

Personal property

Debtors can keep up to $3,500 worth of clothing, including furs and jewelry.

If you own a lot of assets and you are worried about losing them, filing for Chapter 7 bankruptcy may not be the right choice for you. Make sure that you understand the different bankruptcy chapters so that you make the best decision for your circumstances.

No Comments

Leave a comment
Comment Information

Contact Form

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Contact Information

Law Office of Ruth Nelson
7742 14th Avenue NW
Seattle, WA 98117
Phone: 206-633-2517
Map and Directions

Privacy Policy | Business Development Solutions by FindLaw, part of Thomson Reuters.