Most people who file for personal bankruptcy don’t have many personal assets or a lot of cash on hand. However, if you have some money or property but you also have a lot of debt, you may wonder if discharging your debt is an option for you. Fortunately, you may be able to file Chapter 7 Bankruptcy in Mckinney TX even if you have some assets. Every person who files can exempt some of their assets. There are federal and state exemptions. You’ll have the option to use either the state or federal rules.
If you own your home, you won’t have to lose it. Texas has an unlimited homestead exemption. You may also keep one car for each licensed driver in your household. In addition to your primary residence and your car, you can also exempt a generous amount of your personal property. A single person without dependants can exempt $30,000 in personal property. If you are married or have a dependent, you can get exemptions for double that amount. It is possible that you will be able to keep most or all of your property when you file Bankruptcy in Mckinney TX.
There are ways to keep property that is non exempt. In some cases, it will cost the trustee too much to sell the property. When the trustee knows there won’t be any money left to pay the creditor after the trustee takes their fee from the sale. For property that isn’t abandoned by the trustee, there is still an option to keep it if you can pay the trustee the value of the property minus the exemption in cash. You may also be able to exchange an exempt asset for one that is non exempt.
In some cases, a person who files Bankruptcy in Mckinney TX can’t find a way to keep their non exempt property. When that happens, the trustee takes possession of the goods and sells them for as much as they can. The trustee will get a portion of the sale and the rest will be paid to one or more of the creditors included in the bankruptcy. Visit Davidskohmattorney.com to find out more about keeping your property when you can’t pay your debts.