When facing financial troubles, many Tennessee residents may believe they are looking at a hopeless situation in which they will either lose their money or lose their property. However, even if individuals file for Chapter 7 bankruptcy in order to liquidate their assets, there is potential for certain property to be exempt from the filings. As a result, individuals may be able to maintain ownership of that property while also taking care of their debt issues.
One man in another state is currently attending to such a matter after recently filing for Chapter 7. Reports stated that the man was a former politician who is now incarcerated due to a theft conviction. Nonetheless, the man was able to file for bankruptcy in order to address over $300,000 in debt. That amount stems from credit card balances and personal loans.
Though he has filed for liquidation bankruptcy, it was reported that there was only one significant asset that would be subjected to liquidation, and that asset was a vehicle worth approximately $8,500. His home, pension account and other funds valuing considerable sums were exempt from the liquidation process. As a result, he will likely maintain ownership of a substantial portion of his property.
This case may allow individuals who are on the fence about filing for Chapter 7 bankruptcy better understand that they will not necessarily be left empty handed after proceedings. Tennessee residents interested in learning more about this option may wish to consult with experienced attorneys. Liquidation could be a route that allows struggling individuals to get back on their feet financially.
Source: recordonline.com, "Dubaldi files for bankruptcy from prison; owes over $300K in debt", Chris Mckenna, Aug. 16, 2016