Save your Hard-Earned Assets from Bankruptcy
Before you file for Chapter 13 bankruptcy in Massachusetts, it is crucial to know what the exemptions in Chapter 13 bankruptcy are and how they work. One of the most important aspects of a successful bankruptcy case is understanding the exemptions that may be available to protect your property from being liquidated.
At the Law Office of Eric Kornblum, we can help you navigate the complex bankruptcy laws and guide you through the process of determining which exemptions may apply to your unique situation. Schedule a conversation with our credible Westfield bankruptcy attorneys to discuss your case.
Why Do I Need a Chapter 13 Bankruptcy Attorney in Massachusetts?
If you’re trying to deal with too many debts, you’re probably wondering whether Chapter 13 bankruptcy will help you out. Filing for Chapter 13 bankruptcy can be a complex and overwhelming process. Chapter 13 cases can be especially complicated, and mistakes may lead to serious financial problems down the road.
In this situation, having a skilled Westfield Chapter 13 bankruptcy lawyer on your side is crucial to ensuring that your bankruptcy case is successful and that you get the debt relief you need. Here are some reasons why you should consider hiring a Chapter 13 bankruptcy attorney from the Law Office of Eric Kornblum:
- Creation of a Repayment Plan: We can help you develop a repayment plan that works for you and is approved by the court.
- Protection of Assets: We can help you take advantage of the various exemptions that are available under the law to protect your assets from creditors.
- Experienced Guidance: We provide guidance and advice throughout the bankruptcy process. We can help you understand your legal rights and options and guide you through the steps necessary to file for Chapter 13 bankruptcy.
- Negotiation with Creditors: We will negotiate with your creditors to reduce your debt or work out a more manageable payment plan.
- Court Representation: We can represent you in court and handle any legal issues that may arise during your bankruptcy case.
Our legal team is dedicated to helping clients in Massachusetts get the debt relief they need. We can guide you through the Chapter 13 bankruptcy process, protect your assets, and create a successful repayment plan that works for you. Schedule a conversation with us today and learn more about how we can help.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is often called the “wage earner’s plan.” A petitioner must have regular income to enter a Chapter 13 debt repayment plan. This type of bankruptcy is mostly beneficial to individuals with valuable assets and a high source of income but who are struggling to manage their debts. Before filing, it is important to consult with a knowledgeable Westfield bankruptcy attorney first to determine whether Chapter 13 bankruptcy is the right choice for your financial situation.
Chapter 13 bankruptcy involves creating a repayment plan that will help you pay off your debts for three to five years while also protecting your assets and property from creditors. The plan must be approved by the bankruptcy court and must prioritize certain debts. Once the plan is approved, the debtor must make regular payments to a bankruptcy trustee, who will distribute the payments to creditors according to the terms of the plan. Unlike Chapter 7 bankruptcy, which involves the liquidation of assets to pay off debts, Chapter 13 bankruptcy allows debtors to keep their property while they work to repay their creditors.
What are the Exemptions in Chapter 13 Bankruptcy?
When an individual files for Chapter 13 bankruptcy, they may be able to protect certain assets from creditors or from being liquidated to pay off debts. These protections are known as exemptions, and they are defined by statutes. Exempt property cannot be sold or seized to satisfy the individual’s debts.
The exemptions available in Chapter 13 bankruptcy are determined by Massachusetts state law, and they can vary depending on the debtor’s circumstances. Bankruptcy exemptions play a significant role in Chapter 13 bankruptcy because exemptions allow the debtor to keep certain assets while they work to repay their creditors through a court-approved repayment plan. Our trusted Westfield bankruptcy lawyer can help you determine which exemptions may apply in your case and can guide you through the process of creating a successful repayment plan.
Some of the most common Chapter 13 bankruptcy exemptions available include:
One of the most important exemptions available in Chapter 13 bankruptcy is the homestead exemption. This exemption allows debtors to protect a certain amount of equity in their primary residence from being liquidated.
Personal Property Exemption
Debtors may be able to protect certain types of personal property. This means that debtors can protect up to a certain value of personal property from being liquidated to pay off their debts. However, it is important to note that not all personal property may be eligible for the exemption, and the exemption may not apply in all cases. Personal property that may be covered by this exemption includes:
- Household furniture and appliances
- Clothing and jewelry
- Vehicles and boats, up to a certain value
- Tools of the trade, such as equipment used for a business or trade
- Electronic equipment, such as computers and televisions
Motor Vehicle Exemption
Chapter 13 bankruptcy in Massachusetts provides debtors with a vehicle exemption that can help them keep their car or truck while they work to repay their debts. Debtors may be able to protect a certain amount of equity in their motor vehicle from being liquidated.
Tools of the Trade Exemption
This type of exemption allows debtors to protect tools, equipment, and other items that are necessary for their work up to a certain value.
A wildcard exemption can be used to protect any property that is not covered by other exemptions. This exemption can be especially valuable for debtors who have a property that exceeds the value of other exemptions or who have unusual or unexpected assets. If you have luxury items, like a boat or cabin, you want to keep, Massachusetts’ wildcard exemption may protect it.
Retirement Accounts Exemption
Debtors may be able to protect certain types of retirement accounts, such as 401(k) plans and IRAs, from being liquidated. Unless there is a child support or other Family Support Obligation (FSO) lien, most retirement accounts are 100 percent exempt. Social Security benefits and other government benefits are exempt as well.
Call Our Experienced Westfield Chapter 13 Bankruptcy Attorney Now!
If you’re struggling with overwhelming debt, filing for Chapter 13 bankruptcy can be a valuable tool for getting back on track. However, navigating the complex bankruptcy process can be stressful and overwhelming, especially when it comes to understanding the various exemptions that can help protect your assets. Since bankruptcy is supposed to be a form of financial recovery for someone, bankruptcy exemptions protect their dignity by not forcing them to lose and give up some of their most prized possessions.
At the Law Office of Eric Kornblum, our seasoned Westfield bankruptcy lawyer can help you understand the challenges that you face when dealing with financial hardship. We understand that filing for bankruptcy can be a daunting experience, and we are committed to helping you achieve a fresh financial start. From the homestead exemption to the tools of the trade exemption and beyond, we can help you understand your rights and options under the law and create a successful repayment plan that works for you.
Our bankruptcy law firm has a proven track record of providing compassionate, personalized legal services to clients in Westfield, Springfield, and its surrounding areas. We are here to guide you through the Chapter 13 bankruptcy process and ensure that you get the debt relief you need while protecting your assets and property. Contact us today to schedule a conversation and take the first step toward a brighter financial future. Let us help you protect your assets, remove your worries, and get you back on the path to financial stability.