${site.data.firmName}${SEMFirmNameAlt}
East Orange: 973-677-9000
Paterson: 973-247-9445
Jersey City: 201-659-6226
Toll Free: 888-827-5493
FREE Initial
Consultation Se Habla Espanol
Go to Practice Area Categories

Are some assets exempt in a Chapter 7 bankruptcy filing?

Readers may be aware that a bankruptcy filing may temporarily affect one’s credit score rating. However, considering the protections offered by either a Chapter 13 or Chapter 7 filing, any temporary effect may be small tradeoff. 

For example, a low credit score rating may make it harder to qualify for new credit cards or loans. However, one’s credit score can be even more negatively affected by missed loan or debt payments. If debts are unmanageable and are leaving little income left over for necessities such as food and clothing, then a bankruptcy might indeed be the smarter move. 

It’s also important to remember that the type of filing will offer different protections under the federal bankruptcy code. Under Chapter 13, the bankruptcy trustee will endeavor to devise a monthly payment plan that is manageable. Under Chapter 7, a debtor’s nonexempt assets are sold off and the proceeds are applied to his or her debts. In some cases, an individual’s home may qualify as an exempt asset under Chapter 7. Other assets that may qualify as exempt include clothing, basic home furniture, and possibly an individual’s car.

In a Chapter 7 bankruptcy, there is typically some level of equity that can be protected in certain assets, such as an individual’s car. If an asset is worth too much, however, a trustee may favor selling it pay off debts. However, a trustee is also interested in enabling an individual to have a viable way of earning income after the fresh start offered by a bankruptcy filing. Thus, an attorney may be able to work with a debtor in proposing strategic approaches to the trustee.

Source: Wise Bread, “3 Times Bankruptcy Is The Right Move,” Dan Rafter, November 9, 2015

No Comments

Leave a comment
Comment Information

PRACTICE AREA CATEGORIES

Tell Us About Your Case

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

PROFESSIONAL ASSOCIATIONS

  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
Review Us
Goldman & Beslow, LLC

Goldman & Beslow, LLC is a Federal Debt Relief Agency by an Act of Congress. We have proudly assisted consumers seeking relief under the U.S. Bankruptcy Code for over 38 years.

FindLaw Network

qr code

EAST ORANGE
OFFICE
7 Glenwood Avenue,
Suite 311B
East Orange, NJ 07017
East Orange Law Office

Phone: 973-414-8069
Phone: 973-419-7631
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
Fax: 973-675-5886
E-mail the firm

NEWARK OFFICE 168 Bloomfield Avenue
Newark, NJ 07104
Newark Law Office

Phone: 973-483-1333
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

PATERSON OFFICE 100 Hamilton Plaza,
Suite 405
Paterson, NJ 07510
Paterson Law Office

Phone: 973-247-9445
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

JERSEY CITY OFFICE 26 Journal Square,
Suite 603
Jersey City, NJ 07306
Jersey City Law Office

Phone: 201-659-6226
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

Back to Top