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.
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.