If you intend to apply for bankruptcy, you should know that bankruptcy exemptions are a crucial part of the process. According to Chapter 7 bankruptcy, exemptions will determine whether you will retain properties such as personal belongings, pension, car, home or any other property. This According to this chapter, it is possible to keep any of the above properties during and after the bankruptcy.
What will happen when the property is non-exempt?
If the property you intend to keep is non-exempt, the law mandates the trustee to sell it to settle all your unsecured creditors. The Chapter 13 of the bankruptcy act outlines the amount of money you will pay your unsecured and non-priority creditors. However, you should not consider bankruptcy before you know the properties that are exempt in your case, and the way Maryland Bankruptcy Exemptions work.
What exemptions that are granted debtors in most states?
It is important to know that different states have a different set of exemptions that are applicable to their bankruptcy systems. Although most states recommend that their clients select state exemptions, more than 17 states allow debtors to take other bankruptcy exemptions such as the federal bankruptcy exemptions. If you live in Maryland, find out what Maryland Bankruptcy Exemptions are available.
Is it possible to choose all the sets of exemptions at the same time?
If you are lucky to choose an exemption system, you can only choose one exemption, but not two or more at the same time. You should not match and mix the exemption systems. If you choose a state exemption system, you can add to it a short list of other Maryland Bankruptcy Exemptions such as the federal non-bankruptcy exemptions that the federal law allows.
How do the bankruptcy exemptions work?
You will have the permission to keep the property once the amount worth of your property is less than or equal to the exemption amount that your state avails. If your property is worth more than the exemption amount in your state, the bankruptcy trustee will definitely sell the property to pay your unsecured creditors.
To ensure that you successfully apply for bankruptcy to have a lasting debt relief, you should look for lawyers with incomparable knowledge in Chapter 7 and Chapter 13 bankruptcy systems.