In Chapter 7 bankruptcy, a debtor may be required to liquidate non-exempt assets in exchange for their debts being discharged. Assets which are exempt from the bankruptcy will not have to be sold. Exempt property is property that you do not have to forfeit when filing for bankruptcy and are entitled to keep. It is important to have an experienced Tampa bankruptcy attorney at your side who can use the bankruptcy law to help you keep your assets in Chapter 7 bankruptcy. Depending on the circumstances of your case all of your property may be exempt from the bankruptcy. On the other hand, debtors may be forced to liquidate precious assets if they file for bankruptcy and the property does not qualify for an exemption. Therefore, you should speak with a bankruptcy lawyer in Tampa before taking any legal action.
Keep Your Assets in Chapter 7 Bankruptcy with Exemptions
Florida has some of most favorable exemption laws for borrowers in the country. Exemptions in Florida can include, but are not limited to:
- Real estate
- Pension accounts
- Personal property
- Damages awarded from personal injury lawsuits
- 401K plans
- Tools used for business
For a complete list of exemptions contact a bankruptcy law firm in Tampa to schedule a consultation.
Keep Your Assets in Chapter 7 Bankruptcy with Property Redemptions
Under Bankruptcy law 11 U.S.C .722, the debtor has a right to buy back the assets they used as collateral from their creditor. Moreover, the cost of buying back the collateral may be much less than the amount of money owed to the creditor. The cost of the property will be determined by a court-imposed valuation, the amount of the loan used to secure the debt will not determine the buyback price. However, this right only applies to consumer goods securing a consumer debt. Moreover, the property must be either exempt (see above) or abandoned by the bankruptcy trustee. Further, the debtor cannot use property of the estate to pay the buyback price. For more information on how to keep your assets in Chapter 7 bankruptcy with property redemptions contact a bankruptcy lawyer in Tampa.
How Keep Your Assets in Chapter 7 Bankruptcy with Reaffirmation Agreements
Reaffirmation is another tool available to keep your assets in Chapter 7 bankruptcy. See Bankruptcy law 11 U.S.C. 524.
When a debt is reaffirmed, the borrower voluntarily agrees to pay all or a portion of the money owed. A borrower will usually reaffirm a debt when the debt has collateral the borrower wants to keep. Common examples are cars and jewelry. However, debtors should consult with their bankruptcy lawyer before agreeing to reaffirm a debt in bankruptcy. If a debt is reaffirmed and the borrower fails to pay, the creditor can seek repossession of the collateral.
Reaffirmation agreements are completely voluntary, meaning a borrower in bankruptcy can never be compelled to reaffirm a debt. In addition, all reaffirmation agreements must be approved by the bankruptcy court before they can become effective. Normally, a court will only approve reaffirmation agreements if:
- It is in the best interest of the borrower
- It is entered into voluntarily
- The borrower has the ability to repay the debt
- The creditor gives something of value in return for the borrower signing the reaffirmation agreement
- The debtor is given 60 days to rescind the reaffirmation
Bankruptcy Law Firm in Tampa
If you are having a difficult time meeting your financial obligations Florida Law Advisers, P.A. may be able to help. Our Tampa bankruptcy attorneys have years of experience helping people just like you solve their financial problems and obtain a fresh start. If you need need information on how to keep your assets in Chapter 7 bankruptcy call us today. When you hire Florida Law Advisers, P.A. you don’t just get legal advice, you get experienced bankruptcy lawyers by your side every step of the way. Call us today at 800 990 7763 to speak with a bankruptcy lawyer in Tampa.