When you are considering filing for bankruptcy in Phoenix, it can feel like you are at the brink of losing everything—your home, your car, and everything you have worked so hard for.
Luckily, that is not usually the case. In a Chapter 7 bankruptcy, your property will be divided up two ways, into exempt and nonexempt property. Exempt property is considered “off limits” to liquidate for your creditors, and you are generally able to keep these assets. Things like your primary vehicle, essential furniture, appliances, and clothing can remain with you, so your day to day life can remain comfortable.
The vulnerable assets are known to your creditors as nonexempt assets. These typically include “nonessentials” like secondary vehicles, expensive sports or musical equipment, second homes, and investments.
Of course, after a certain monetary value, your essential items become nonessentials. Luxury items, multiples (things like your second refrigerator, television, and gaming equipment), or excess value in jewelry, clothing, or other items are at risk of not being covered by Arizona state exemptions—this means that creditors can take these items and apply them against your outstanding debt.
Just because you are losing some of your luxuries does not mean that your life during bankruptcy is over. In fact, bankruptcy is usually a vehicle for people to restructure their finances so that they are stronger than ever before. The Phoenix bankruptcy attorneys at Curry, Pearson & Wooten can help you protect your most important assets and apply state exemptions where you need them most. Do not trust your bankruptcy to just anyone—call Curry, Pearson & Wooten today at 602-258-1000 to discuss your case now.