Many Florida residents probably think of “bankruptcy” as a scary word. After all, if you are filing for bankruptcy, things have gone quite poorly for your financial situation, right? Not necessarily.
For some people who are looking at bankruptcy as an option, their financial situation simply got out of hand due to unexpected circumstances, like a death in the family or job loss. Yes, these individuals are probably looking at some tough financial decisions, but it doesn’t mean that they’ve made huge mistakes.
So, looking at bankruptcy as an option could be something you see as an important step to set things on the right path again. And, it isn’t all bad news for bankruptcy filers. Of course, filing for bankruptcy comes with an automatic stay of collection efforts, but there will be exempt property that will not be part of any asset liquidation.
What is exempt?
Each bankruptcy filing is different so, of course, the exact exempt assets for anyone filing for bankruptcy will be different. But, typically, these types of assets include clothing, tools used for work, retirement plans and household furnishings. A bankruptcy filing doesn’t leave people destitute – it is a process that is intended to help people address their debt burdens and move forward with a clean slate.
If you are thinking about filing for bankruptcy, you’ll want to be sure to get the right information about your own unique financial situation. Getting debt relief isn’t always easy, but the bankruptcy process can help those who are facing difficult circumstances.