Choosing a path with which to seek relief from overwhelming debt concerns can be challenging at times. One of the most pressing concerns one might have regarding the Chapter 7 bankruptcy process could stem from the topic of asset liquidation. While this may be an aspect of this process, this does not mean that individuals in Maryland will lose all their possessions, as certain types of assets may be exempt from the bankruptcy process.
According to experts, there are various types of assets that may be exempt from liquidation during the bankruptcy process. This could include items that are essential to everyday life such as household goods and clothing. In some cases, even a motor vehicle that one uses to navigate to and from destinations such as work may also be exempt from this process.
A primary residence can also qualify for an exemption, provided a homeowner does not have over a certain amount of equity in the home. Social Security benefits, retirement funds, and veteran’s benefits are a few more types of assets that are typically exempt from liquidation. Even money from personal injury judgments and life insurance policies may constitute protected assets.
Filing for bankruptcy
While liquidation may be a part of Chapter 7 bankruptcy, those who seek relief via similar paths may still be able to retain possession of many of their assets through every step of this process. Individuals in Maryland who have concerns about this aspect of the process could choose to consult with an attorney for advice on what to expect and on every essential topic to address regarding bankruptcy. In doing so, a person could obtain much-needed aid in preparing to make informed choices while creating a strategy with which to seek relief from the burdens of debt.