Attorney Tyler, TX : What is Exempt in a Bankruptcy?
In a bankruptcy plan, particularly a chapter 7, which is the most common and basic type of bankruptcy, and the type most commonly filed, assets and property that is not exempt will be surrendered to a bankruptcy trustee. This trustee then liquidates the property and distributes all of the proceeds among the debtor’s unsecured creditors. A bankruptcy attorney Tyler, TX can help you to understand this process better.
In exchange for this, the debtor will be allowed to discharge some amount of debt. This may be all of the debt or just a small portion. Here’s what you may want to know about what type of property is put at risk when settling a debt through bankruptcy with your attorney Tyler, TX.
Instances Where Nothing is Seized
In some instances, nothing at all may be seized. This is what happens when an individual only owns exempt property, such as clothing, household goods, older cars, books, basic furniture and so on. The only property that they are interested in is property that can be sold.
This means that land, real estate and houses are usually the first to go. Business assets may also be sold off, and so may newer furniture, new cars and so on. In any event, there are instances where absolutely nothing will be seized.
The Consequences of Lying
Being dishonest when settling a bankruptcy is never a good idea. When you rearrange the numbers to hide certain properties, there’s actually a chance that all of the goodwill you’ve earned towards your debt will be revoked and you may be starting back from square one.
In some instances, this could be coupled with, say, tax evasion, fraud and various other charges. When dealing with a bankruptcy plan, your best bet is really to find a good bankruptcy attorney Tyler, TX has to offer, and to work out a good, solid plan with them. “Cooking the books” and so on will only lead to ruin in the end, even if you can get away with it at first.
Bankruptcy is a way out, and if you want to take that path, you really need to take the high road, while you’re at it, and make sure that you’re doing everything on the up and up. If you try to work around the system, you are just as likely to lose your property and your money owed together.
Weighing Your Options
Bankruptcy is not the only choice. It’s important to understand that there are a lot of different ways to handle debt. There are payment plans that can be made if you don’t want to part with your property, there are a number of financial options that you can discuss with your attorney. If you want to know more about bankruptcy or your options in general, see William H. Lively, Jr. P.C. Attorney at Law in order to find out exactly what you can and cannot do to escape debt for good.
Debt is simply not worth carrying around. Whatever you decide to do to end debt forever, the important thing is that you don’t carry it, because it can take a toll in the long run.
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