When a person owes a tremendous amount of debt, it can be difficult to know what to do next. For many, filing for bankruptcy is a smart and practical choice, but many refrain from taking this step because they have various misconceptions about what this step will mean. One misunderstanding that people have regarding consumer bankruptcy is the assumption they will lose their belongings.
Chapter 7 bankruptcy, known as liquidation bankruptcy, leads to the discharge of certain types of debt. It also requires the liquidation of some assets to pay off some balances. However, the intent of bankruptcy is not to leave you penniless. Bankruptcy exemptions can allow you to keep many of the things that are important to you while still dealing with your debt.
What will you get to keep?
Filing for bankruptcy does not mean that you will lose all of your stuff. In fact, when you file for bankruptcy in Texas, you likely be able to stay in your home, drive your car and live life much like you did before you filed. Before you move forward with your bankruptcy filing, it might be helpful to learn more about what exemptions could apply to your case. You may be able to keep the following things, even after filing for Chapter 7 bankruptcy:
- Personal vehicles worth under a certain amount
- Your family's home
- Items you need for your job
- Furniture and appliances you need for daily use
While it may be a comfort to you to learn that filing for bankruptcy will not leave you destitute, there could be things you may have to give up. It is beneficial to learn about what to expect from this process. Taking this step can allow you achieve a better financial future and deal with certain debt that you can no longer manage on your own.
A fresh start for Texas consumers
Making the choice to move forward with bankruptcy can be daunting. You may be unsure of what this step can mean for your future, your long-term plans and your credit. In reality, bankruptcy is a practical choice for many consumers with certain types of debt.
It might be helpful for you to learn more about the benefits of bankruptcy and what it can mean for your future. A complete assessment of your case can help you understand more about exemptions and answer other questions you may have.