Protecting Assets in Chapter 7 Bankruptcy

"Exemptions" or asset protections are used in Chapter 7 Bankruptcy cases to make sure you keep as much of, if not all of, your property.  Exemptions allow you to shield your property from your creditors and the Chapter 7 Trustee.  While exemption laws are usually straightforward, filing bankruptcy after recently moving from state to state can present questions of which state's exemption laws you are entitled to use.  Normally it doesn't matter, but in many cases, it can be the difference between losing a home, vehicle or savings account.

At the Law Offices of Keith D. Collier, we pride ourselves on staying on the cutting edge of developments in the bankruptcy code both here at home in Florida and across the country.

For example, if you just moved here from New Jersey after having lived in New Jersey all your life, you would be entitled to use either the New Jersey exemptions OR the federal exemptions but you would NOT be entitled to use Florida exemptions.

This may not sound like a major issue at first glance, but consider the following scenario:

You have a $15,000.00 vehicle that you own outright.  If you accidentally elect to use Florida exemptions, you will have at least $9,000.00 worth of equity in that vehicle that is UNPROTECTED.  Unprotected property has to be turned over to the Chapter 7 Trustee unless you (or your attorney) can negotiate a deal to allow you keep the property.  This is referred to as a "buyback".  Click here to learn more about "buybacks".

However, if you use the federal exemptions that you are entitled to, not only would your entire vehicle be protected, you would still have thousand and thousands of extra dollars worth of exemptions to protect other property as well.

At the Law Offices of Keith D. Collier, we review each case to ensure that the most beneficial exemptions that are available are used.  This way, you maximize the amount of asset protection you receive so that you're Bankruptcy process is simple and low-cost.  Call the Orlando, Jacksonville, or Daytona Law Offices of Keith D. Collier today for a free in-office or phone consultation.