For many Escondido residents, their financial situation slowly deteriorates over time to the point where a serious dinner table discussion regarding bankruptcy comes up. For people who find themselves in this type of situation, debt and bills are piling up, and they come to understand that they simply do not have the resources to keep up. The prospect of filing for bankruptcy can be scary, mostly because many people believe that they will lose everything.
However, any of our readers who are familiar with previous posts here know that isn't necessarily the case. Yes, in a Chapter 7 bankruptcy certain assets will need to be forfeited to the bankruptcy trustee so that those items can be sold off, with the proceeds applied toward outstanding debt. But, there are several bankruptcy exemptions that will come into play.
Bankruptcy exemptions will allow an Escondido resident who is filing for bankruptcy to keep certain items - these items will be exempt from the bankruptcy process. For example, some people may be able to use a homestead exemption in order to potentially keep their home, if that is financially feasible. Others may use car exemptions or jewelry exemptions; the point is to make sure you have an exemption plan when beginning the bankruptcy process.
At our law firm, we know that most people have quite a few questions about what they can and cannot keep when filing for bankruptcy. For more information on how our law firm attempts to help Escondido residents, please visit the bankruptcy exemptions section of our website.