Exemptions To Filing For Bankruptcy
When considering bankruptcy, one of the biggest hurdles people face is the thought of losing their property. In reality, though, property is rarely lost, thanks to bankruptcy exemptions in Tennessee. I am attorney Ben Sissman, and for more than 30 years I have been helping people like you overcome debt while retaining property.
How Exemptions Work
Exemptions are surprisingly simple. You can keep or protect up to $10,000 worth of personal property. Here is something important to keep in mind: That is $10,000 in resale value. Sometimes people think about the value of their property in terms of how much they paid for it. However, the furniture that cost thousands last year is likely only worth hundreds this year. Very rarely do I encounter people with property that could be sold for more than $10,000.
What About The Car?
Is your car paid off? If so, you may be surprised how low the resale price is. Most likely, you will find that it is exempt. If it is not paid off, the bottom line is that you are going to have to make payments if you want to keep it. Either way, I will take the steps necessary to help you keep your car if you want to. Chapter 13 bankruptcy may be necessary in these cases.
What About The House?
This is the one property issue that may be a challenge. The homestead exemption in bankruptcy protects up to $75,000 in equity for a couple. If you are elderly or you have children living at home, the exemption is higher. However, thanks to multiple mortgages and other factors, I find that people often do not have that much equity. If there is equity above the exemption, Chapter 13 bankruptcy may be necessary.
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The law office of Ben Sissman is a debt relief agency that helps people file for bankruptcy relief under the Bankruptcy Code.