How To Protect Your Personal Property During Bankruptcy
Making the final decision to file for bankruptcy can be daunting, especially when you take into consideration all of the assets and personal property you’ve worked hard for. At Tom Orr Law we are here to make those decisions less difficult and answer all the “what if” questions you may have. We want to make the bankruptcy process as seamless as possible for you and your family. Knowing what personal property is most important to protect and how to protect it when filing for Chapter 7 bankruptcy is essential. There are a wide variety of bankruptcy exemptions, both NJ bankruptcy exemptions and federal bankruptcy exemptions that one can take. For more information about those exemptions check out our blog Bankruptcy Exemptions In New Jersey to learn more.
Planning and organizing yourself for bankruptcy before filing is a great way to begin to prepare and protect your most valuable personal property. Since the money in your bank account is not included as a NJ bankruptcy exemption, protecting these funds is crucial. Organizing your bank account so your unprotected funds will not be lost is key. This means withdrawing your money and investing it in exempt assets, those assets can be found here, Bankruptcy Exemptions In New Jersey. Be sure to consult your New Jersey bankruptcy attorney before you start pre-bankruptcy planning to ensure you will benefit.
Protecting Your Personal Property
The best way to protect your personal property and assets is through exemptions. Many NJ bankruptcy exemptions include some of your hard-earned personal property items. Exempting these items automatically protects them during the bankruptcy process. These personal property items include your clothing. Yes don’t worry, you won’t lose your clothing items during bankruptcy. They can be exempt fully or up to the amount given to you. In New Jersey, your company stock, personal property, furniture, and other household goods can be exempt up to $1,000.
Some federal exemptions are also a great way to ensure your personal property is protected. These exemptions include up to $25,150 of residence items, and motor vehicles valued at or up to $4,000 plus business items valued at or up to $2,525. A wildcard exemption is an additional federal exemption that can be made to protect your personal property. This exemption allows you to protect personal property up to $1,325 plus an additional $12,575 of any unused portion of the home exemption.
Stay In The Know
Knowing your options and filing for the above federal and NJ bankruptcy exemptions will ensure that during Chapter 7 bankruptcy your most valued assets and personal property are protected.
Contact us today at Tom Orr Law for guidance in deciding which exemptions are best for your individual situation to ensure you are prepared and your property is protected. Schedule a free consultation today.