Chapter 7 Exemptions

Bankruptcy exemptions refer to assets that you may keep when you file for Chapter 7 bankruptcy. As a general rule, Chapter 7 or total liquidation bankruptcy will require that you surrender most of your cash and many of the possessions you own so these items can be sold.

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The Bankruptcy Means Test – How Does It Work

A bankruptcy means test is what the name implies. The purpose of the test is to see if you have the means to pay for at least some of your debts before they are discharged in bankruptcy. Learn the process of calculating a bankruptcy means test.

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Can a creditor obtain relief from the automatic stay in a bankruptcy?

When an individual files for bankruptcy, he or she is immediately put under a legal protection referred to as an automatic stay. This automatic stay means that creditors cannot attempt to collect money from the person until the discharge or dismissal of the bankruptcy takes place. A creditor does have the option of appealing to the court and requesting relief from the stay, meaning they ask to be allowed to pursue what they are owed even during the bankruptcy.

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How does bankruptcy affect property settlement after a divorce?

When a person goes through a divorce and receives a property settlement from it, that settlement is not exempt from being liquidated during a bankruptcy. Should an individual file for bankruptcy and then get divorced afterward, and subsequently receive a property settlement, he or she may lose that property settlement to the bankruptcy, since it counts as an asset.

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What does it mean to avoid a lien?

When you avoid a lien, you obtain a judicial determination that the lien no longer encumbers a piece of property. This means that you would then be able to sell the property despite the lien.

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