You are not alone if you have some concerns about bankruptcy. Many people in Florida worry about the process before they begin. More often than not, they are unsure of what they might lose.
Bankruptcy is a serious debt relief option that could have some negative sides, depending on your situation. However, it is also a system with the sole purpose of helping you get your life back on track after unmanageable debt. Therefore, you could be able to keep certain essential assets if you file for Chapter 7.
Your house would probably be among the assets you could keep. The court would decide on whether you could keep your main residence by first determining its value. If the value of your home fell under a certain level, you could probably mark it off as exempt from the Chapter 7 liquidation process.
According to the Washington Post, your car, cash and some of your retirement accounts could also qualify for an exemption. Of course, there are differences from one state to another, so it would be important to determine exactly how you would like to proceed before you file any papers.
If it turns out that a Chapter 7 filing would result in too much a loss for you, it might be possible to switch to a different type of bankruptcy, if you qualify. This flexibility, combined with other renegotiation or refinancing options, could form an overall strategy to help you free yourself from your financial burdens.
Despite the unpopular image bankruptcy has, it is still a process designed to help you get your life back on track. Remember also that you may also have other options to exhaust before you make a formal declaration under Chapter 7. This is not legal advice, so please use it only as educational information.
