Having Right Bankruptcy Information is Crucial to Success

 you are liquidating your estate for the benefit of creditors. But in reality you are not liquidating your estate, that is only what could happen, if your assets exceed what the law allows you to protect. The law was never written to leave you penniless and asset-less. It is written with a “fresh start” in mind.

Now that does not mean you will not have to sacrifice some things, but chances are that if you are in the situation where you are considering filing bankruptcy you are already in to deep and giving up some things is only natural. The Chapter 7 process is also designed to be rather quick and efficient. On a whole, the average case from time of filing to discharge of your debt will take about six months.

In a Chapter 7 you are allowed to protect most if not all your assets to some extent, and these are called exemptions. And you are allowed to take these exemptions to shield certain assets. Here are some common assets that the average household has, and will get to keep.

Household goods and furnishings, such as furniture, clothes, pots, pans and the like. The exemption for these types of personal assets is quite generous. Another big worry is retirement savings, and in general, you are able to keep your retirement accounts such as pensions or 401ks up to and including one million dollars in value, yes that is right, if you have nine hundred thousand in your 401k and you file a Chapter 7, that money is safe from liquidation and is out of reach of your creditors.

In all bankruptcy chapters you are shielded from your creditors’ collection activities immediately upon the filing of the case. This is referred to as an automatic stay, and is perhaps one of the most powerful tools the code has to offer. What does this mean? It means that if you are being sued for money by a creditor, that lawsuit has to stop, if your wages are being garnished, that garnishment has to stop! This is clear and there are no exceptions to this rule, it is very powerful.

Creditors who willfully violate this powerful stay can be penalized harshly by the judge assigned to oversee your case, which can include the reimbursement of your attorney’s fees for fighting the action, or even damages.

For more information visit bankruptcy lawyer .