Many people filing for bankruptcy worry that they will lose everything in the process. However, this is not necessarily the case, and many assets are exempt from the bankruptcy process. Which property can you protect if you file for bankruptcy?
You may keep much of the property you rely on in your daily life.
The state of Massachusetts offers a variety of exemptions to those filing for bankruptcy. These exemptions include:
- Your homestead—Depending on how much equity you have in your home, your residence may be exempt from the bankruptcy process.
- Your household goods—Your clothing, your appliances, much of the furniture in your home and other property necessary for your day-to-day life will probably not be considered in the bankruptcy process. However, if you have multiple items—two freezers, for example—the court may only allow you to keep one.
- The tools, machinery, stock and other items used in your trade—While the state limits the amount of property you can keep for your trade, you may retain ownership of the things you use to support yourself and your family.
- Your car or truck—You rely on your vehicle to travel to work, to get medical care and more, and you may be able to keep a vehicle if its value does not exceed state-defined limits.
Many other assets may be exempt from the bankruptcy process, and you may want to speak to an attorney when filing for bankruptcy. They can help you determine which property is exempt from the bankruptcy process and help you keep the things you need most while achieving relief from the burden of debt.