However, you should be aware that certain assets are exempt from seizure in order to repay your creditors. The reason there are exempt assets is because of the purpose of bankruptcy. Bankruptcy performs two primary functions. It allows creditors to obtain the funds they require, while also allowing the insolvent individual to move on with their lives and get a fresh start. Due to the fact that bankruptcy is intended to provide a new beginning, there will be certain exempt property, which are the things that you need to truly make this new beginning.
Due to the fact that bankruptcy is intended to be a new beginning, certain assets are exempt. If you own a home that has no value to your creditors, the home will be exempt property. The same applies to the vehicle you need to drive to work in order to start over. It will also be exempt, unless the creditors find it to be of considerable value.
In addition, creditors will not be able to seize any retirement funds or other funds you have acquired because they are exempt property. Your household products are exempt because they are typically deemed to have no resale value. Even the bank cannot accept your wedding jewelry.
There are numerous methods for determining what is exempt and what is not. Essentially, you must consider the resale value of the item in question to determine whether or not you believe it can be resold for a higher price than you owe. If not, the property will be exempt, allowing you to start over with it. If you have any queries about exempt and nonexempt property, consult a lawyer.
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