There are both pros and cons regarding filing for bankruptcy. There are also many myths that stop people from making the right decisions in regard to their finances.
Many people believe that they will lose everything if they file for bankruptcy, but this is not the case. As you learn more about the process, you will find that you may be able to keep some, or most, of your assets.
Within the bankruptcy code are many exemptions of which you can avail yourself. In addition to exemptions under federal law, each state has its own exemptions in place. Depending on your approach, you may find that you can keep your property, including:
- Household goods
- Retirement funds
- Public benefits
At our law firm, we know the ins and outs of the bankruptcy process and the many exemptions that are available to you. For example, New Jersey state law does not currently have an exemption for cars or homes. This is why it's so important for anyone filing for bankruptcy to know what to expect from the start, as any mistake could lead to the loss of a valuable asset.
In addition to exemptions, there are multiple types of bankruptcy filings. By learning more about both Chapters 7 and 13, you can make up your mind as to which one is right for your situation.
It is never easy to decide for or against filing for bankruptcy, but it may be something you need to do. If you decide to file, it's best to do what you can to keep as many of your assets as possible.