Bankruptcy is a complicated legal process. If you have started researching whether you may be able to benefit by filing, it’s likely that you have come across the term exemptions or read that certain property may be treated as exempt. But what exactly does it mean for an asset to be exempt? Read on to learn more. To discuss the particulars of your situation with a Lynnwood bankruptcy attorney, call our office today.
Exemptions Protect Your Property
Simply put, the bankruptcy exemptions protect your assets. In a Chapter 7 bankruptcy, your non-exempt assets will be liquidated to pay back your creditors. Any remaining debts will be discharged, provided that they are not specific types of debts that are non-dischargeable.
You can exempt a certain value of specific kinds of assets. In Washington, there are exemptions for:
- Motor vehicles
- Personal property
- Tools of the trade
- State pensions and retirements
In addition, there is a wildcard exemption that you can use to protect any assets you want to protect up to a certain value. The best way to ensure that you claim as much property as possible as exempt is to discuss your situation with an experienced bankruptcy attorney.
What If All of My Assets are Exempt?
Many people wonder what will happen if they do not have any assets that can be sold off in bankruptcy. In this situation, you can obtain a bankruptcy discharge without having to give up any of your assets. This is known as a zero-asset bankruptcy, and most Chapter 7 bankruptcies fall into this category.
Call Us Today to Schedule a Free Consultation with a Snohomish County and King County Bankruptcy Lawyer
If you are experiencing financial difficulty, bankruptcy may be right for you. At Bountiful Law, we are committed to helping people get a fresh financial start. To schedule a free case evaluation with an attorney, call our office today at 425.517.3051 or contact us online.