Seeking debt relief through bankruptcy can be a difficult but positive experience for most people. However, individuals who file for Chapter 7 bankruptcy may worry about having to hand over all of their assets in order to satisfy their debts. While it is true that some property will be sold, people in Connecticut are often pleasantly surprised to find out just how much they will get to keep.
The reason that some of a person’s assets are sold is so that the resulting money can be applied toward existing debts before they are discharged. However, this only applies to non-exempt property. Non-exempt property typically includes family heirlooms, musical instruments, second vehicles, vacation homes and other non-essential items.
Those pursuing bankruptcy can exempt some of their property from this process, though. Not just anything can be considered non-exempt, although there are a few basics. Necessities for living a modern life will virtually always be exempt, and these are usually considered items that are needed for people to continue working and living. Tools of a person’s trade, musical instruments owned by professional musicians, damages from civil suits and more may all fall under the category of exempt.
Many Connecticut consumers are under the false impression that pursuing Chapter 7 bankruptcy means that they will have to hand over everything they own. This is simply not true, and most people can expect to retain ownership of much of their personal property. While some assets will be non-exempt and therefore sold, the benefits of debt relief are usually well worth it.