When one pursues a Chapter 7 bankruptcy, it is usually necessary to relinquish certain types of property. Many people think it is necessary to forfeit all property. This is a huge misconception. Much property is exempt, that is to say it cannot be taken in the proceeding. This often includes:

  • Motor vehicles, up to a certain value
  • Reasonably necessary clothing
  • Reasonably necessary household goods and furnishings
  • Household appliances
  • Jewelry, up to a certain value
  • Pensions
  • A portion of the equity in the debtor's home
  • Tools of the debtor's trade or profession, up to a certain value
  • A portion of unpaid but earned wages
  • Public benefits — including public assistance (welfare), Social Security and unemployment compensation — accumulated in a bank account
  • Damages awarded for personal injury

Conversely, nonexempt property — that which the filer must typically forfeit— includes:

  • Expensive musical instruments, unless the debtor is a professional musician
  • Collections of stamps, coins and other valuable items
  • Family heirlooms
  • Cash, bank accounts, stocks, bonds and other investments
  • A second car or truck
  • A second home or vacation home

It is important to fully inform yourself about what exemptions you may have so that you can pursue the filing that is right for your unique circumstances.

Based in Sandusky, Ohio, we at The Law Offices of Shelly L. Kennedy, Ltd., are prepared to work directly with you on any Chapter 7 issue. We encourage you to get in touch with our lawyer and team today.

To reach out and schedule an initial consultation to discuss any Chapter 7-related issue with our bankruptcy attorney, call 419-967-6039 or email the firm.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.